Which of the Following Is True Regarding the Number of Creditors

question 83

Multiple Choice

Which of the following is true regarding the number of creditors who must vote to accept a reorganization plan under a Chapter 11 proceeding?

• A)For the plan to be accepted,one-half of the class of secured creditors must vote to approve it.
• B)For the plan to be accepted,two-thirds of the creditors of each class of creditors must vote to approve it.
• C)For the plan to be accepted,three-fourth of the creditors of each class of creditors must vote to approve it.
• D)For the plan to be accepted,one-fourth of the class of unsecured creditors must vote to approve it.
• E)For the plan to be accepted,one-third of the class of unsecured creditors must vote to approve it.

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Definitions:

Consignee

A consignee is the individual or entity to whom goods are shipped to be sold or cared for, but the ownership of those goods remains with the consignor until sold.

Inventory Reporting

The process of documenting the quantity and value of a company's stock of goods.

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for the goods until they are delivered to the buyer's specified location.

Ending Inventory Balance

The total value of all goods available for sale at the end of an accounting period.