1. Greenwood Motels has filed a petition for bankruptcy but hopes to continue its operations both during and after the bankruptcy process. Which one of the following terms best applies to this situation?

	Chapter 7 bankruptcy
	Liquidation
	Technical insolvency
	Accounting insolvency
	Reorganization

Phil is reviewing ABC Company's dividend policy as it relates to the firm's shareholders. As part of this review, he wants to divide shareholders into two basic categories in respect to dividend payments. The first group will be shareholders who are taxed on dividend income and the second group will be shareholders who receive some form of tax break on dividend income. Which of the following types of shareholders should be placed in the tax-favored second group?

I. Corporate
II. Pension fund
III. Individuals
IV. Trust funds

	I only
	III only
	I and III only
	II and IV only
	I, II, and IV only

Tom and Jerri currently own 300 shares of Alpha stock. Each share is currently worth $36. What will Tom and Jerri's investment in Alpha be worth if the company declares a 4-for-3 stock dividend?

	$6,075
	$10,800
	$19,000
	$21,600
	$28,800