1 An "automatic stay" granted in a chapter 11 bankruptcy proceeding results in a. The discharge of debts or a portion thereof due to creditors b. The immediate sale of assets which are liquidated in order to pay off debts c. The halting or stoppage of payments due from a debtor to creditors d. All of the above 2. One of the challenges involved in the purchase of another company comes in the form of assessing the fair market values of the assets acquired. Which of the following statements is true related to this process? a. The acquirer [parent] is required to enlist the help of outside or external valuation specialists b. The acquirer must use current employees (internal with the appropriate professional credentials c. The acquirer may use either internal or external valuation specialists d. The acquirer should consult with the FASB on the appropriateness of fair value specialists 3. Which of the following statements about vanable interest entities (VIE's) is false? a VIE's are generally financed with at least 50% equity b. Franchises and leases could be examples of VIE's. C VIE's may or may not be considered business entities d Many manufacturers [auto set up VIE's as a way to securitize their financing receivables