The legal proceeding for liquidating or reorganizing a firm operating in default is called a:
A) tender offer.
B) bankruptcy.
C) merger.
D) takeover.
E) proxy fight.

Question

Quizplus · Accepted Answer

Bankruptcy is the legal process for liquidating or reorganizing a firm operating in default. Tender offer is a type of takeover bid where an investor offers to buy shares directly from shareholders. A merger is a combination of two or more companies into a single entity. Takeover is the process of acquiring control of a company through the purchase of a substantial number of shares. A proxy fight is an attempt by a group of shareholders to gain control of a company by proposing and soliciting votes for their own board candidates. None of these terms specifically refer to the legal proceeding for liquidating or reorganizing a firm operating in default, which is bankruptcy.

The Legal Proceeding for Liquidating or Reorganizing a Firm Operating