Not sure which one is false
ME Which of the following statements is FALSE with regards to default/bankruptcy? Select one: O a While developing the legal reorganization plan, under Division 1 Proposal or a CCAA filing, management continues to operate the business. b. Whether paid by the firm or its creditors, the indirect costs of bankruptcy decrease the value of the assets that the firm's investors will ultimately receive O c. When a corporation becomes financially distressed, outside professionals, such as legal and accounting experts, consultants, appraisers, auctioneers, and others with experience selling distressed assets, are generally hired. O d. The creditors must vote to accept the reorganization plan, and the bankruptcy court must approve it under legal bankruptcy filing. If an acceptable plan is not put forth the court may ultimately force a legal liquidation of the firm. O . Although indirect costs of bankruptcy are difficult to measure accurately, they are typically much smaller than the direct costs of bankruptcy. 1. A firm that fails to make the required interest or principal payments on the debt is in default, O g. Because the assets of the firm might be more valuable if kept together, creditors seizing assets in a piecemeal fashion might destroy much of the remaining value of the firm ME Which of the following statements is FALSE with regards to default/bankruptcy? Select one: O a While developing the legal reorganization plan, under Division 1 Proposal or a CCAA filing, management continues to operate the business. b. Whether paid by the firm or its creditors, the indirect costs of bankruptcy decrease the value of the assets that the firm's investors will ultimately receive O c. When a corporation becomes financially distressed, outside professionals, such as legal and accounting experts, consultants, appraisers, auctioneers, and others with experience selling distressed assets, are generally hired. O d. The creditors must vote to accept the reorganization plan, and the bankruptcy court must approve it under legal bankruptcy filing. If an acceptable plan is not put forth the court may ultimately force a legal liquidation of the firm. O . Although indirect costs of bankruptcy are difficult to measure accurately, they are typically much smaller than the direct costs of bankruptcy. 1. A firm that fails to make the required interest or principal payments on the debt is in default, O g. Because the assets of the firm might be more valuable if kept together, creditors seizing assets in a piecemeal fashion might destroy much of the remaining value of the firm
