Which of the Following Statements Is Most CORRECT

question 4

Multiple Choice

Which of the following statements is most CORRECT?

• A) Our bankruptcy laws were enacted in the 1800s, revised in the 1930s, and have remained unaltered since that time.
• B) Federal bankruptcy law deals only with corporate bankruptcies. Municipal and personal bankruptcy are governed solely by state laws.
• C) All bankruptcy petitions are filed by creditors seeking to protect their claims against firms in financial distress. Thus, all bankruptcy petitions are involuntary as viewed from the perspective of the firm's management.
• D) Chapters 11 and 7 are the most important bankruptcy chapters for financial management purposes. If a reorganization plan cannot be worked out under Chapter 11, then the company will be liquidated as prescribed in Chapter 7 of the Act.
• E) "Restructuring" a firm's debt can involve forgiving a certain portion of the debt, but it cannot call for changing the debt's maturity or its contractual interest rate.

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Definitions:

Self-Managed Teams

Groups of employees who operate without direct supervision, often taking on responsibilities such as planning, problem-solving, and decision making.

Permanent Work Team

A group of employees assigned to work together on a long-term basis to achieve a specific set of goals or tasks.

Grapevine

Internal information channel that transmits information from unofficial sources.

Informal Communication Channel

Messages outside formally authorized channels within an organization’s hierarchy.