A(n) ____ is a situation in which a failing business is permitted to lengthen the amount of time it has to meet its obligations with creditors.
A) assignment
B) composition
C) extension
D) insolvency

Question

Quizplus · Accepted Answer

An extension is a situation in which a failing business is allowed to extend the time it has to pay its creditors. A composition is a legal agreement between a debtor and its creditors to settle outstanding debts for less than the full amount owed. An assignment is the transfer of property or rights to another person. Insolvency is a state in which a person or business is unable to pay its debts as they come due.

A(n) ____ Is a Situation in Which a Failing Business