6. CPA QUESTION Decal Corp. incurred substantial operating losses for the past three years. Unable to...
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6. CPA QUESTION Decal Corp. incurred substantial operating losses for the past three years. Unable to meet its current obligations, Decal filed a petition of reorganization under Chapter 11 of the federal Bankruptcy Code. Which of the following statements is correct? a. A creditors' committee, if appointed, will consist of unsecured creditors. b. The court must appoint a trustee to manage Decal's affairs. c. Decal may continue in business only with the approval of a trustee. d. The creditors' committee must select a trustee to manage Decal's affairs.
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