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Which of the Following Statements Is FALSE

Question 6

Multiple Choice

Which of the following statements is FALSE?


A) The U.S.bankruptcy code was created to organize this process so that creditors are treated fairly and the value of the assets is not needlessly destroyed.
B) Because the assets of the firm might be more valuable if kept together,creditors seizing assets in a piecemeal fashion might destroy much of the remaining value of the firm.
C) Debt holders can then take legal action against the firm to collect payment by seizing the firm's assets.
D) Because most firms have multiple creditors,coordination makes it difficult to guarantee that each creditor will be treated fairly.

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