Chapter XI reorganization:
A)Means that an organization must liquidate its assets
B)Means that some management decisions must be approved by a court
C)Is intended for companies that have lots of liquid assets but are locked into an unfair labor contract
D)Is most successful if an organization has very high debt levels
E)None of the above

Question

Quizplus · Accepted Answer

Chapter XI reorganization, also known as Chapter 11 bankruptcy in the United States, allows a company to continue its operations while restructuring its debts. During this process, certain key management decisions must be approved by a bankruptcy court to ensure that the reorganization plan is feasible and fair to all parties involved.

Chapter XI Reorganization