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Karl forms a new company and immediately takes out a loan to purchase substantial amounts of inventory for sale. However, his real intention is to
Karl forms a new company and immediately takes out a loan to purchase substantial amounts of inventory for sale. However, his real intention is to file for bankruptcy after two years of establishing himself as a business, in addition to seeking to sell the remaining inventory to a friend at a substantially discounted price. This is an example of a. debt refinancing b. inventory management fraud c. planned bankruptcy (bust-out) d. commercial loan fraud
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