A firm may file for Chapter 11 bankruptcy
I.in an attempt to gain a competitive advantage.
II.using a prepack.
III.while allowing the current management to continue running the firm.
IV.even though it is not insolvent.
A)I and III only
B)I,II,and IV only
C)I and II only
D)III and IV only
E)I,II,III,and IV

Question

Quizplus · Accepted Answer

Chapter 11 bankruptcy allows a firm to reorganize its debts and operations, potentially gaining a competitive advantage (I), can be filed using a prepackaged plan (II), allows current management to continue running the firm (III), and can be filed even if the firm is not insolvent (IV).

A Firm May File for Chapter 11 Bankruptcy