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An Involuntary Petition for Reorganization May Be Filed Against a Firm

Question 185

Multiple Choice

An involuntary petition for reorganization may be filed against a firm if ________.


A) the firm has past-due debts of $5,000 or more
B) the firm's solvency ratio is greater than 20%
C) the firm's current ratio is 2:1
D) the book value of the firm's assets is less than the stated liabilities

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