Which of the Following Statements Concerning a Chapter 11 Reorganization

question 5

Multiple Choice

Which of the following statements concerning a Chapter 11 reorganization plan is true?

• A)A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan.
• B)A reorganization plan can be confirmed by the court over objections of some creditors if the court determines that the plan is feasible and fair.
• C)Only the bankruptcy court has the authority to confirm or reject the reorganization plan.Creditors do not have a right to vote on the plan.
• D)A reorganization plan binds only the debtor and not the creditors.

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be paid back in the future.

Debts Owed

Amounts of money that are required to be repaid by an individual or organization to creditors.

Drawing Account

A specific account used to record amounts withdrawn by the owner(s) of a business for personal use.

Withdrawals

Amounts taken from a business by its owner(s) for personal use.