The process of liquidating a business outside of the jurisdiction of the bankruptcy courts is called a(n) ____.
A) assignment
B) composition
C) extension
D) voluntary insolvency

Question

Quizplus · Accepted Answer

An assignment is the process of liquidating a business outside of the jurisdiction of the bankruptcy courts. This involves the debtor transferring all of their assets to a third-party assignee, who then uses the proceeds from the sale of those assets to pay off creditors. Choices B, C, and D are all different types of bankruptcy proceedings.

The Process of Liquidating a Business Outside of the Jurisdiction