The responsibilities of the debtor in possession include all of the following EXCEPT
A) the valuation of the firm as a going concern.
B) drawing up a plan of reorganization.
C) recommending a recapitalization plan.
D) liquidating the assets of the firm.

Question

Quizplus · Accepted Answer

The responsibilities of the debtor in possession do not include liquidating the assets of the firm. Instead, their main goal is to reorganize the company and come up with a plan to repay creditors and emerge from bankruptcy as a financially stable organization. The other choices, such as valuing the firm, drawing up a reorganization plan, and recommending a recapitalization plan, are all tasks that fall under the purview of the debtor in possession.

The Responsibilities of the Debtor in Possession Include All of the Following