Which of the following is a likely combination of activities in the handling of a financially distressed firm?

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The combination of activities in the handling of a financially distressed firm typically involves composition, which is an agreement between the debtor and creditors for payment of debts over time; extension, which is a postponement of debt payment due dates; and the formation of a creditor committee to represent the interests of the creditors. While internal reorganization and merger may be options to address financial distress, they are not as common as composition, extension, and creditor committee formation. Liquidation is an extreme option that would likely only be used if the company's financial situation is deemed irreparable.

Which of the Following Is a Likely Combination of Activities