Which of the Following Is Not a Reason for a Company

question 28

Multiple Choice

Which of the following is not a reason for a company to expand through a combination,rather than by building new facilities?

• A)A combination might provide cost advantages.
• B)A combination might provide fewer operating delays.
• C)A combination might provide easier access to intangible assets.
• D)A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results.

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Definitions:

Unsecured Creditor

A creditor who extended credit without requiring specific collateral, and thus ranks behind secured creditors in claiming repayment in the event of debtor insolvency.

Chapter 7 Liquidations

A bankruptcy process where a debtor's assets are liquidated or sold off by a trustee to pay off creditors, leading to the discharge of remaining debts.

Bankruptcy Trustee

An appointed individual who oversees and manages the estate of a debtor during the bankruptcy process, with the power to sell assets and distribute the proceeds to creditors.

Chapter 7 Trustee

An appointed individual in a Chapter 7 bankruptcy case responsible for managing the debtor's estate, including liquidating non-exempt assets to pay creditors.