Which of the Following Statements Is Most CORRECT

question 7

Multiple Choice

Which of the following statements is most CORRECT?

• A) the primary test of feasibility in a reorganization is whether every claimant agrees with the reorganization plan.
• B) the basic doctrine of fairness states that all debtholders must be treated equally.
• C) since the primary issue in bankruptcy is to determine the sharing of losses between owners and creditors, the "public interest" is not a relevant concern.
• D) while a firm is in bankruptcy, the existing management is always allowed to retain control, though the court will monitor its actions closely.
• E) to a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.

---

Definitions:

Influence

The capacity or power of persons or things to be a compelling force on the actions, behavior, opinions, etc., of others.

Outcomes

The results or consequences of actions, behaviors, or processes, which can be positive, negative, or neutral.

Network Power

The ability of networks to control or influence the behavior of their members by setting standards or norms that determine participation.

External Networks

Connections and relationships an individual or organization maintains with external parties for gaining information, support, or resources.