Which is the form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets?

Question

Quizplus · Accepted Answer

Bankruptcy is the legal method for closing a business and paying off creditors when debts are substantially greater than assets. This allows for an organized and structured way to handle the financial obligations and closure of the business. The other options, sell off, walkaways, and workout, do not necessarily involve a legal process or address the payment of creditors in the same way that bankruptcy does.

Which Is the Form of Business Termination That Uses a Legal