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:

Budgeted Sales

Budgeted Sales represent the anticipated sales revenue of a business, based on forecasted selling quantities and prices for a specific period.

Cash Collections

The process of gathering all payments or monetary amounts received from customers over a period.

Accounts Receivables

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Selling and Administrative

Expenses related to the selling of products and the administration of business operations, excluding manufacturing costs.