Which Statement Is True

question 56

Multiple Choice

Which statement is true?

• A)A prepack is a plan of liquidation used to distribute a firm's assets.
• B)Bankruptcy courts have "cram-down" powers.
• C)The absolute priority rule must be strictly followed in all bankruptcy proceedings.
• D)Creditors cannot force a firm into bankruptcy even though they might like to do so.
• E)A reorganization plan can be approved only if the firm's creditors all agree with the plan.