A reorganization in bankruptcy is a business plan that enables a bankrupt firm to continue operating. The acceptability of a plan depends upon the following criteria:
A)fairness and timeliness of debt repayment.
B)feasibility and timeliness of debt repayment.
C)feasibility and fairness of debt repayment.
D)the reasonability of the debt restructuring scheme and the timeliness of debt repayment.

Question

Quizplus · Accepted Answer

A reorganization plan in bankruptcy must be both feasible, meaning it can realistically be implemented, and fair, ensuring equitable treatment of all parties involved.

A Reorganization in Bankruptcy Is a Business Plan That Enables