The Principal Benefit of Proceedings Under the Companies Creditor's Arrangement

question 71

Multiple Choice

The principal benefit of proceedings under the Companies Creditor's Arrangement Act is that

• A)all actions against the debtor,other than those by secured creditors,are stayed.
• B)all actions against the debtor may continue,but payment of any judgment is stayed unless a court orders otherwise.
• C)all actions against the debtor,including actions by secured creditors,are stayed.
• D)no actions against the debtor are stayed,but the debtor enjoys government protection in several phases of the proceedings.
• E)no actions against the debtor are stayed unless a court so orders.

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Definitions:

Days' Sales

A financial metric that measures the average number of days it takes a company to convert its inventory into sales.