A Debtor Who Continues to Run a Business and Performs

question 6

Multiple Choice

A debtor who continues to run a business and performs most of the functions that a trustee performs in other types of bankruptcy is called a(n) :

• A)debtor in bankruptcy.
• B)debtor in possession.
• C)unimpaired debtor.
• D)suspended debtor.

---

Definitions:

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels.

Units

In business, units refer to the individual items or quantities of a product or service measured for sale, production, or inventory.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Planning Budget

A budget that is prepared for a specific level of activity; it outlines the expected revenues and expenses associated with a planned activity level.