The potential legal consequences for a company experiencing serious financial difficulty do not include:

Question

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Bankruptcy is not a potential legal consequence for a company experiencing serious financial difficulty. While bankruptcy is a common outcome of financial distress, it is not a legal process in and of itself. Rather, bankruptcy is a legal status that a company or individual can enter into in order to address their financial difficulties through a court-supervised process. The other choices (receivership, liquidation, and voluntary administration) are all potential legal consequences of serious financial difficulty for a company.

The Potential Legal Consequences for a Company Experiencing Serious Financial