Which One of These Statements Correctly Identifies a Condition Which

question 12

Multiple Choice

Which one of these statements correctly identifies a condition which must be met for creditors to force a firm into involuntary bankruptcy?

• A)The creditors that represent 30 percent or more of the firm's debt must agree on a plan prior to filing the involuntary petition.
• B)The firm must be at least 120 days delinquent in its debt payments.
• C)At least one-third of a firm's known creditors must participate in the filing.
• D)If there are more than a dozen creditors,then at least three with claims totaling $13,475 or more must participate in the filing.
• E)Any individual creditor that is owed $5,000 or more can file an involuntary petition regardless of the number of total creditors.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Equilibrium Price

The cost at which the amount of products available for sale matches the amount of products consumers want to buy.

Firms Operating

Businesses engaged in any activity that seeks profits by providing goods or services to customers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good supplied by producers, under the assumption of ceteris paribus (all other factors being equal).