What term describes the scenario when a business is carried on with the intent to defraud creditors?

The term that accurately describes the scenario in which a business is operated with the intention to defraud creditors is "fraudulent trading." This concept is particularly relevant in the context of insolvency and bankruptcy law, as it indicates that the business is engaging in activities designed to prevent creditors from being repaid, often through deceit or misrepresentation of the company’s financial situation.

Fraudulent trading is significant because it can lead to severe legal repercussions for the individuals involved, including personal liability for debts incurred during the fraudulent activity. This legal framework aims to protect the integrity of financial transactions and ensure that creditors are not unfairly disadvantaged.

In contrast, while "wrongful trading" refers to the situation where directors continue to trade when they know the company is insolvent—without the intent to defraud—this does not carry the same implications of deception as fraudulent trading does. The other terms, "criminal trading" and "civil trading," are not established legal terms in the context of defrauding creditors and lack specificity when discussing the operations of a business in relation to creditor rights. Therefore, "fraudulent trading" is the most accurate and relevant term for this scenario.