Which of the Following Is True Regarding the Number of Creditors

question 63

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

Recognize the types of law created by administrative agencies.

Distinguish between executive and independent agencies and their classifications.

Understand the process of rule making, including informal and formal rule-making procedures.

Identify how administrative law judges' decisions are dealt with and the appeal process.

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another business for a price higher than the fair value of its identifiable net assets.

Equity Method

An accounting technique used when an investor holds significant influence but not full control over an investee, allowing the investor to record a proportionate share of the investee's profits or losses.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a parent company and its subsidiaries as one entity.

Straight Line Amortization

A technique for distributing the expense of an intangible asset consistently throughout its lifespan.