Which one of the following statements is true about most corporations that default on their debts?
A) The corporation is not liquidated to pay the debts.
B) They enter bankruptcy and later liquidation of the firm.
C) They do not enter bankruptcy but enter into reorganization.
D) The corporation is seldom forced into bankruptcy.

Question

Quizplus · Accepted Answer

Most corporations that default on their debts are not immediately liquidated to pay off those debts. Instead, there may be efforts to restructure the debt, negotiate with creditors, or find other solutions to avoid liquidation. Liquidation is often seen as a last resort.

Which One of the Following Statements Is True About Most