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 involves financial restructuring to help a distressed firm continue its operations, rather than closing or selling the firm.

A Reorganization Is Deﬁned As