Which of the Following Statements Concerning a Chapter 11 Reorganization

question 5

Multiple Choice

Which of the following statements concerning a Chapter 11 reorganization plan is true?

• A)A reorganization plan will be confirmed by the court only if a majority of each class of creditors votes in favor of the plan.
• B)A reorganization plan can be confirmed by the court over objections of some creditors if the court determines that the plan is feasible and fair.
• C)Only the bankruptcy court has the authority to confirm or reject the reorganization plan.Creditors do not have a right to vote on the plan.
• D)A reorganization plan binds only the debtor and not the creditors.

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Definitions:

Employee

An individual who performs work under the direction and control of an employer in exchange for compensation.

Reasonable Skill

The level of competence that one can expect from a person with the standard abilities and knowledge in a particular field.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract without a lawful excuse.

Agency Contract

A legal agreement where one party, the agent, agrees to act on behalf of another, the principal, in business dealings.