Which strategy involves giving up management of the firm to the courts in return for some settlement of the corporation's obligations?
A) liquidation
B) bankruptcy
C) diversification
D) divestment
E) consolidation

Question

Quizplus · Accepted Answer

Bankruptcy involves giving up control of the firm to the courts in order to settle the corporation's obligations. Liquidation involves selling off the assets of the firm to pay off debts, while diversification, divestment, and consolidation are all strategies for corporate restructuring and growth.

Which Strategy Involves Giving Up Management of the Firm to the Courts