The Difference Between Liquidation and Reorganization Is

question 40

Multiple Choice

The difference between liquidation and reorganization is:

• A) reorganization terminates all operations of the firm and liquidation only terminates non-profitable operations.
• B) liquidation terminates only profitable operations and reorganization terminates only non-profitable operations.
• C) liquidation terminates all operations and reorganization maintains the option of the firm as a going concern.
• D) liquidation only deals with current assets and reorganization only consolidates debt.
• E) None of these.

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Definitions:

Taste Aversions

A learned avoidance of a particular food or drink because it has been associated with an unpleasant or nauseating experience.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Evoked Responses

Electrical potentials recorded from the nervous system following presentation of a stimulus, used to assess sensory function and neural pathways.

Extinction

The process by which stimuli lose their ability to evoke learned responses because the events that had followed the stimuli no longer occur. The learned responses are said to be extinguished.