When a Firm Files to Either Reorganize or Liquidate in Bankruptcy

question 68

Multiple Choice

When a firm files to either reorganize or liquidate in bankruptcy all creditors of the firm

• A) are prevented from filing or continuing with lawsuits against the firm.
• B) all creditors of the firm are guaranteed to receive less than their original claim.
• C) automatically become shareholders of the firm.
• D) none of the above.

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Definitions:

Variable-ratio Schedule

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, leading to a high and steady rate of response.

Reinforcement

In behavioral psychology, a procedure or consequence that strengthens a behavior, making it more likely to occur again in the future.

Responses

Reactions or actions of an organism or system to stimuli or changes in the environment.

Reinforced Schedule

A plan or strategy in operant conditioning that outlines how and when reinforcement (rewards or punishments) will be given for certain behaviors.