Sarah is the president and CEO of a company that is experiencing financial problems. She has decided to file for bankruptcy,and has asked you for advice.If she wants to keep the business open,retain most of her employees' jobs,and continue in business in the future,she should file for:

Question

Quizplus · Accepted Answer

Chapter 11 bankruptcy allows a business to restructure its debt and operations while remaining open and operating. It also allows for the retention of employees' jobs. This appears to be the best option for Sarah's goals of keeping the business open, retaining employees, and continuing operations in the future. Chapter 7 is not an option as it requires liquidation of assets and cessation of operations. Chapter 9 is specifically for municipalities, and Chapter 13 is for individuals. Chapter 15 is for cross-border insolvencies.

Sarah Is the President and CEO of a Company That