BDS Constructors Corp. is a construction company in North Dakota. Due to lack of availability of credit funding, the company lost most of their projects, which eventually led to bankruptcy. Under Chapter 11 of Bankruptcy Act, the employer can file for:
A)protection.
B)claims.
C)reorganization.
D)loans.

Question

Quizplus · Accepted Answer

Under Chapter 11 of the Bankruptcy Act, a company can file for reorganization, which allows it to restructure its debts and business operations to try to become profitable again while being protected from creditors.