The Firm for Which You Have Worked for 6 Years

question 3

Multiple Choice

The firm for which you have worked for 6 years has filed for Chapter 11 bankruptcy. What this means to you is:

• A)you will receive your wages going forward without fail, as you are now a secured creditor
• B)you are likely to receive your wages going forward, as they have a high priority in bankruptcy cases like this one
• C)your union contract as to wages and benefits is null and void

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Definitions:

Operating Activities

Pertains to the primary day-to-day activities of a business, such as selling products or services, which are reflected in the cash flow statement.

Net Cash

The balance of cash remaining once cash inflows and outflows have been accounted for during a specific period.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing debt, obtaining loans, and returning capital to shareholders.

Net Cash

The amount of cash available after accounting for all cash inflows and outflows within a specific period.