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If a Company Is in Financial Trouble the Directors May

Question 31

Multiple Choice

If a company is in financial trouble the directors may protect themselves from liability for insolvent trading by appointing:


A) A receiver will receive the accounts and negotiate with secured creditors.
B) An administrator who will try to resolve the company's financial problems.
C) A secured creditor who will try to prevent other creditors from winding up the company.
D) A liquidator who will try to raise as much finance as possible within 30 days.

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