Which of the following statement(s) regarding financial distress is (are) true?
A) Firms in financial distress always end up in bankruptcy.
B) Firms can postpone bankruptcy for many years.
C) Firms can postpone bankruptcy for many years, and, ultimately, the firm may recover from financial distress and avoid bankruptcy altogether.
D) Ultimately, the firm may recover from financial distress and avoid bankruptcy altogether.
Correct Answer:
Verified
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