Edwards Farm Products was unable to meet its financial obligations and was forced into using legal proceedings to restructure itself so that it could continue as a viable business. The process this company underwent is known as a:
A) merger.
B) repurchase program.
C) liquidation.
D) reorganization.
E) divestiture.

Question

Quizplus · Accepted Answer

The process Edwards Farm Products underwent is known as a reorganization, which involves restructuring the company's financial and organizational structures to allow for continued operations. This is different from liquidation, which involves selling off assets to pay off debts, and merger or divestiture, which involve combining or separating with another company. Repurchase programs typically involve buying back stock from shareholders.

Edwards Farm Products Was Unable to Meet Its Financial Obligations