______________ Occurs When a Company Is Broken Up into Smaller

question 15

Multiple Choice

______________ occurs when a company is broken up into smaller divisions and sold for a profit.

• A) Liquidation
• B) Internal reorganization
• C) Chapter 11
• D) Restructuring

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Definitions:

Bonds Payable

Long-term liabilities represented by bonds that a company must repay to investors at a specified maturity date.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Common Stock

A type of security that signifies holding an ownership stake in a corporation, reflecting corporate equity possession.