The legal proceeding for liquidating or reorganizing a firm operating in default is called a
A) Tender offer.
B) Bankruptcy.
C) Merger.
D) Takeover.
E) Proxy fight.

Question

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Bankruptcy is the legal proceeding involving a person or business that is unable to repay outstanding debts. The process begins with a petition filed by the debtor or on behalf of creditors, leading to the debtor's assets being measured and evaluated, and then used to repay a portion of outstanding debt.

The Legal Proceeding for Liquidating or Reorganizing a Firm Operating