Chapter 11 Bankruptcies, Which Are Filed by Businesses

question 345

Multiple Choice

Chapter 11 bankruptcies, which are filed by businesses:

• A) force the sale of all business assets
• B) wipe the slate clean of debts for a business and allow it to continue operating
• C) allow a business to keep operating under reorganization of its activities and its debts
• D) prohibits the firm from starting any new operations, and it must wind up all old business
• E) none of the other choices

---

Definitions:

Unrealized Inventory Profits

Profits that result from internal sales within a company or conglomerate but have not been realized through sales to external parties.

Significant Influence

A level of control that an investor has over a business entity, typically through ownership of a significant but not majority share of voting stock.

Consolidated Statement

A financial statement that aggregates the financial positions and results of operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.