Micro Corporation's creditors agree to a workout with the firm. This is

Question

Quizplus · Accepted Answer

A workout refers to a privately negotiated adjustment of creditor-debtor relations. It usually involves the creditors forgiving some of the debts or providing the debtor more lenient repayment terms in exchange for the debtor fulfilling some obligations, such as selling assets or restructuring the business. It is a way for the debtor to avoid bankruptcy while still stabilizing their financial situation. Therefore, the most appropriate answer is C.

Micro Corporation's Creditors Agree to a Workout with the Firm