Importance of taking security for a debt

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1) Why do you think we have a bankruptcy process in the U.S? Is it ethical to use bankruptcy as a business strategy? When and under what circumstances? Research to find a company that has used bankruptcy as a part of its business strategy.

2) As you know, the UCC Article 9 regulates secured transactions. What is the importance of taking security for a debt and what does this mean in a bankruptcy proceeding? Why would a creditor ever engage in a transaction that was not secured by collateral?

3) Is it fair that accountants can be held liable under securities laws? Why or why not? Is it fair to hold an accountant liable for not catching the fraud of management? why or why not?

Reference no: EM133104318

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