A reorganization is defined as:
A) A situation where the senior management of a firm is replaced.
B) A change in the reporting structure of a firm's various divisions and departments.
C) The sale and total closure of a firm.
D) A merger which results in the total replacement of the target firm's managers.
E) A financial restructuring of a distressed firm in an attempt to keep the firm operating.

Question

Quizplus · Accepted Answer

A reorganization typically refers to a financial restructuring of a distressed firm to help it continue operations, often involving changes in debt, equity, or operations.

A Reorganization Is Defined As