Which of the Following Statements Is FALSE

question 75

Multiple Choice

Which of the following statements is FALSE?

• A)The U.S.bankruptcy code was created to organize this process so that creditors are treated fairly and the value of the assets is not needlessly destroyed.
• B)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.
• C)Debt holders can then take legal action against the firm to collect payment by seizing the firm's assets.
• D)Because most firms have multiple creditors,coordination makes it difficult to guarantee that each creditor will be treated fairly.

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