__________________ refers to a firm that is still allowed to continue to operate while the creditors' claims are settled using a collective procedure.

Question

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Chapter 11 bankruptcy allows the firm to restructure and continue operating while the creditors' claims are settled through a collective procedure. Chapter 7 bankruptcy involves liquidation and closure of the firm. Technical insolvency refers to a situation where a firm's liabilities exceed its assets, but it may still be able to operate. Prepackaged bankruptcy refers to a situation where a firm negotiates a plan for bankruptcy with creditors before filing for bankruptcy.

__________________ Refers to a Firm That Is Still Allowed to Continue