Which one of the following is generally true concerning Chapter 11 bankruptcies?

The firms officers turn over the firms daily operations to a court appointed director.

Only voluntary petitions are permissible for Chapter 11 filings.

Bankruptcy petitions are automatically accepted by the bankruptcy courts.

A reorganization plan can be submitted by either the bankrupt firm or by its creditors.

Which one of the following is an indirect cost of bankruptcy?

The administrative costs of the bankruptcy.

Fees paid to accountants to prepare reports for the bankruptcy court.

Fees paid to the firms bankruptcy attorney.

Management time spent dealing with bankruptcy issues.