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An Involuntary Petition for Reorganization May Be Filed Against a Firm

Question 190

Multiple Choice

An involuntary petition for reorganization may be filed against a firm if any one of the following conditions are met EXCEPT


A) the book value of the firm's assets is less than the stated liabilities.
B) past-due debts of $5,000 or more.
C) three or more creditors who can prove aggregate claims of $5,000 against the firm.
D) insolvency.

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