Which of the following is a 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 a legal process for closing a business and paying off creditors when debts are substantially greater than assets. It provides a structured way for a business to reorganize or liquidate its assets in order to pay off its debts, and can help protect the business owner from personal liability for the business's debts. Sell off, walkaway, and workout are not formal methods of business termination and may not provide the same legal protections as bankruptcy.

Which of the Following Is a Form of Business Termination