An attempt to financially restructure a failing firm so that it can continue operating as a going concern is called a:
A)merger.
B)reorganization.
C)liquidation.
D)repurchase program.
E)divestiture.

Question

Quizplus · Accepted Answer

A reorganization is a financial restructuring of a failing firm designed to attempt to allow it to continue operating as a going concern. A merger involves two companies combining into one, a liquidation is the process of selling off a firm’s assets to settle its debts, a repurchase program is a process of a company buying back its own shares, and a divestiture is the process of a company selling off a part of its business.

An Attempt to Financially Restructure a Failing Firm So That