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Creditors Often Prefer Reorganization to Liquidation Because

Question 7

Multiple Choice

Creditors often prefer reorganization to liquidation because:


A) The firm's ability to pay its debts is higher when it is allowed to continue operations.
B) The courts take control of the firm's assets, preventing the firm from selling them off without paying creditors.
C) More debts are required to be paid.
D) The creditors are in control of the liquidation and payment process.

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