A legal attempt to financially restructure a failing firm so that it can continue operating as a going concern is called a
A)merger.
B)reorganization.
C)liquidation.
D)repurchase program.
E)divestiture.

Question

Quizplus · Accepted Answer

A reorganization involves restructuring a failing firm's finances and operations through bankruptcy proceedings, in order to allow it to continue operating as a going concern. This may involve renegotiating debt, changing the ownership structure, or other measures to improve the firm's financial health. A merger, divestiture, or repurchase program would not necessarily involve restructuring a failing firm, while liquidation involves shutting down the company and selling off its assets.

A Legal Attempt to Financially Restructure a Failing Firm So