True or False ______ 2. If an extension is included in a distressed firms reorganization plan, creditors then most likely receive their payment in full. ______ 3. The primary purpose of the U.S. bankruptcy laws is to avoid having firms that are worth more as going concerns put out of business by individual creditors who could force liquidation of the firms assets. ______ 4. The holdout problem is resolved in bankruptcy court by the courts ability to lump creditors into classes. ______ 5. It is easier for a firm with many creditors to informally reorganize than it is for a firm with just a few creditors to do so. ______ 6. The relative priority doctrine requires that the creditors of a financially distressed firm be compensated for their claims in a rigid, hierarchical order.