The Option of Keeping a fiNancially Distressed fiRm as an Operating

question 58

Multiple Choice

The option of keeping a financially distressed firm as an operating concern is called a(n) :

• A) Liquidation.
• B) Reorganization.
• C) Acquisition.
• D) Merger.
• E) Technical solvency.

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Definitions:

Currency

The system of money in common use in a country, which facilitates the exchange of goods and services.

Liquid Asset

An asset that can easily be converted into cash in a short period without losing value.

Function Of Money

Refers to the main roles of money in an economy, which include being a medium of exchange, a unit of account, a store of value, and sometimes, a standard of deferred payment.

Functions Of Money

Money serves as a medium of exchange, a measure of value, a standard of deferred payment, and a store of wealth.