The ﬁnancial restructuring of a failing ﬁrm to attempt to continue operations as a going concern is called a ________________.
A) Merger.
B) repurchase program
C) Liquidation.
D) Reorganization.
E) Divestiture.

Question

Quizplus · Accepted Answer

The term used to describe the financial restructuring of a failing firm to attempt to continue operations as a going concern is Reorganization. Merger refers to the combining of two companies into a single entity, repurchase program refers to a company buying back its own stock from shareholders, liquidation refers to the process of selling off all of a company's assets and distributing the proceeds to creditors and shareholders, and divestiture refers to a company selling off or spinning off a subsidiary or division.

The ﬁNancial Restructuring of a Failing ﬁRm to Attempt to Continue