What Is Normally Required Before a Reorganization Plan Can Be

question 74

Multiple Choice

What is normally required before a reorganization plan can be implemented?

• A) The plan must be presented by the company and confirmed by the court.
• B) The plan must be approved by each class of creditors and each class of stockholders, and confirmed by the court.
• C) The plan must be presented by the company, approved by two-thirds of each class of stockholders, and confirmed by the court.
• D) The plan must be presented by the company, approved by three-fourths of each class of stockholders, and confirmed by the court.
• E) The plan must be approved by two-thirds of each class of creditors, approved by two-thirds of each class of stockholders, and confirmed by the court.

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Definitions:

Accounting Period

A specific time period at the end of which an organization prepares financial statements.

Balance Sheet Accounts

Accounts that make up the financial statement showing a company's assets, liabilities, and equity at a specific point in time.

Statement of Stockholders' Equity

A financial document that shows changes in the value of a company's equity over a period, including shares issued, dividends, and earnings.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.