Which of the Following Statements Is FALSE

question 46

Multiple Choice

Which of the following statements is FALSE?

• A)The creditors must vote to accept the Chapter 11 reorganization plan,and the bankruptcy court must approve it.If an acceptable plan is not put forth,the court may ultimately force a Chapter 7 liquidation of the firm.
• B)In Chapter 13 liquidation,a trustee is appointed to oversee the liquidation of the firm's assets through an auction.The proceeds from the liquidation are used to pay the firm's creditors,and the firm ceases to exist.
• C)When a corporation becomes financially distressed,outside professionals,such as legal and accounting experts,consultants,appraisers,auctioneers,and others with experience selling distressed assets,are generally hired.
• D)In the case of Chapter 11 reorganization,creditors must often wait several years for a reorganization plan to be approved and to receive payment.

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Definitions:

Peremptory Challenges

The right in jury selection for the attorneys to reject a certain number of potential jurors without stating a reason.

Quasi In Rem

A legal term referring to a court's power over a property or status of an out-of-state defendant's property within its jurisdiction.

Attachment Jurisdiction

The legal authority courts have to seize a defendant's property within its territory to secure jurisdiction over a lawsuit or to satisfy a judgment.

Reply

A response by the plaintiff to the defendant’s counterclaim.