Natasha Runs a Lingerie Business That Caters to a Select

question 72

Multiple Choice

Natasha runs a lingerie business that caters to a select crowd.Notwithstanding her valiant efforts at promotion,the lingerie business goes nowhere and she's left saddled with over $100 000 in debts.She would like to continue operating,at least for a while,and makes a proposal to creditors.She puts all creditors owed $1000 dollars or less in one class,puts her two large secured creditors in their own categories,and the preferred creditors in a third class.Is it likely that her proposal will succeed?

• A)No,because Natasha is not allowed to classify all creditors.
• B)No,because Natasha has too much debt to be able to make a proposal to creditors.
• C)Yes,so long as the secured creditors are not secured against the same assets and are satisfied in the proposal,and her creditors do not object to the classification as unfair.
• D)Yes,so long as all creditors are fully satisfied.
• E)Yes,so long as Natasha promises that if the proposal does not work she will assign herself into bankruptcy.

---

Definitions:

Cash Sales

Transactions where payment is made in cash at the time of purchase, without the use of credit.

Budget Manual

A comprehensive guide that outlines the procedures, policies, and responsibilities associated with the budgeting process in an organization.

Budget Procedures

The set of processes and guidelines a business or organization follows to create, implement, and monitor its budget.

Budget Schedule

A detailed plan that outlines a company's financial and operational goals over a specific period, often including expected revenues, expenses, and cash flows.