Parallel Diversification Involves Moving into New Businesses That Are Not

question 28

True/False

Parallel diversification involves moving into new businesses that are not related to the company's original core business.

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Definitions:

Preferential Lien

A lien that gives the creditor the right to be paid before other creditors if the debtor defaults or assets are liquidated.

Existing Debt

Financial obligations or loans that a person or entity is currently responsible for.

Cram Down

When the court forces dissenting creditors whose claims would be impaired by a proposed plan to accept the plan when the court can find that it is fair and equitable to the class of creditors whose claims are impaired.

Reorganization Plan

A document detailing the process of reconfiguring a company's structure and operations, typically as part of bankruptcy proceedings.