Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)According to the provisions of the 1978 Bankruptcy Reform Act,U.S.firms can file for two forms of bankruptcy protection: Chapter 11 or Chapter 13.
• B)The Chapter 11 reorganization plan specifies the treatment of each creditor of the firm.In addition to cash payment,creditors may receive new debt or equity securities of the firm.The value of cash and securities is generally less than the amount each creditor is owed,but more than the creditors would receive if the firm were shut down immediately and liquidated.
• C)In the more common form of bankruptcy for large corporations,Chapter 11 reorganization,all pending collection attempts are automatically suspended,and the firm's existing management is given the opportunity to propose a reorganization plan.
• D)While developing a Chapter 11 reorganization plan,management continues to operate the business.

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Definitions:

Citizens United

A landmark U.S. Supreme Court case that ruled restrictions on independent political spending by corporations and unions are unconstitutional.

Supreme Court

The highest judicial court in a country or state, often having the final say in legal cases.

Ethical Implications

The consideration of the moral consequences and responsibilities of one's actions, especially in professional and personal decisions.

Self-Administer

The act of an individual taking medication or performing a medical treatment on themselves without the direct assistance of healthcare professionals.