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:

Main Idea

The central concept or most important point that an author or speaker aims to communicate to their audience.

Specific Action

A particular, well-defined step taken to achieve a goal or objective.

Inconvenience

A mild annoyance or discomfort that causes a temporary interruption or difficulty in a person's routine or plans.

Consequences

The outcomes or effects that result from a particular action or set of conditions, often in terms of cause and effect.