A Plan Is Considered to Be Fair and Equitable to a Class

question 85

Multiple Choice

A plan is considered to be fair and equitable to a class of impaired claimants with unsecured claims if the reorganization plan:

• A)provides for the sale of any property subject to liens securing such claims free and clear of such liens with the liens to attach to the proceeds of the sale.
• B)provides for the realization by the holders of the "indubitable equivalent" of such claims.
• C)provides that each holder of a claim will receive or retain on account of the claim property of a value equal to the allowed amount of such claim.
• D)provides the holder of any interest that is junior to the interests of such class will not receive any property on account of such junior claim.

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Quantity Demanded

Quantity Demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price, over a specified time period.

Total Revenue

The complete amount of income generated by the sale of goods and services before any expenses are deducted.

Unit Elastic

A situation in economics where a percentage change in price causes an equal percentage change in quantity demanded or supplied.