Two in-court options for dealing with firms in financial distress are
A)merger and acquisition.
B)liquidation and reorganization.
C)leasing and LBO.
D)issuance of stocks or bonds.

Question

Quizplus · Accepted Answer

Liquidation and reorganization are the two in-court options typically used to deal with firms in financial distress. Liquidation involves selling off the firm's assets to pay off its creditors and ultimately closing the business. Reorganization involves restructuring the company's debt and operations to become profitable again. Both options can help alleviate financial distress, but reorganization allows for the possibility of the company continuing to operate and potentially recover.

Two In-Court Options for Dealing with Firms in Financial Distress