Richard has invested $5 million in a roof installation company.Because of some bad strategic decisions made by the company owners, the company runs into losses.It files Chapter 11 bankruptcy.The company owners and Richard reach a resolution, and Richard agrees to accept $3 million in the hope that the firm will regain its glory in the future.This reduction in the amount of money that Richard accepts is known as a(n)
A)"look up."
B)"haircut."
C)"workout."
D)"slack."

Question

Quizplus · Accepted Answer

The reduction in the amount of money that Richard accepts is known as a "haircut."

Richard Has Invested $5 Million in a Roof Installation Company