Which one of the following statements concerning bankruptcy is correct?

Multiple Choice

Bankruptcy is sometimes used as a means to increase payroll costs.

Bondholders have a greater incentive than stockholders to keep a firm from filing for bankruptcy.

The assets of a firm tend to increase in value when a firm is in financial distress.

An indirect cost of bankruptcy is the loss of key employees.

The administrative costs incurred in a bankruptcy are considered indirect bankruptcy costs.