5. Bankruptcy. True or false? (LOS)

a. When a company becomes bankrupt, it is usually in the interests of the equityholders to seek a liquidation rather than a reorganization.

b. A reorganization plan must be presented for approval by each class of creditor.

c. The Internal Revenue Service has first claim on the company's assets in the event of bankruptcy.

d. In a reorganization, creditors may be paid off with a mixture of cash and securities.

e. When a company is liquidated, one of the most valuable assets to be sold is often the tax-loss carry-forward.