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- 11) The indirect costs of bankruptcy are borne principally byA) bondholders.B) stockholders.C) managers.D) the federal government14-9 In a normal liquidation situation, ___________ are lower than preferred stockholders on the priority list of claims on liquidation proceeds. Select one: a. contributions to employee benefit plans b. consumer claims c. common stockholders d. unsecured creditors e. administrative expenses associated with the bankruptcyWhat is the accounting equation for a trustee in a bankruptcy proceeding (i.e., corporate liquidation)? a. Assets equal accountability b.Assets equal liabilities plus owner’s equity c.Assets equal liabilities minus estate deficit d.Assets minus liabilities equals accountability
- I. Creditors have voice in management, thru its voting power.II. Shareholders are prioritized during liquidation process of the corporation. It is superior to debt in terms of claims from corporate s assets. A• FT B• TT C• FF D• TFIf a corporation files bankruptcy and is liquidated, who should get paid first: the corporation’s bondholders or its stockholders? Why?Choose the correct. An involuntary bankruptcy petition must be filed bya. The insolvent company’s attorney.b. The holders of the insolvent company’s debenture bonds.c. Unsecured creditors with total debts of at least $15,775.d. The company’s management.
- 27.Which of the following is not one of the basic shareholders rights Group of answer choices The right to inspect the accounting records of the company The right to participate in the proceeds of the sale of corporate assets upon liquidation of the corporation The right to participate in earnings The right to maintain one's proportional interest in the corporationChoose the correct. Which of the following is not an expected function of a bankruptcy trustee?a. Filing a plan of reorganization.b. Recovering all property belonging to a company.c. Liquidating noncash assets.d. Distributing assets to the proper claimants.Chapter 13 bankruptcy provides for: a. adjustment of debts of persons with regular income b. reorganization of a corporation c. liquidation proceedings d. none of the above
- Which of the following is not an expected function of a bankruptcy trustee?a. Filing a plan of reorganization.b. Recovering all property belonging to a company.c. Liquidating noncash assets.d. Distributing assets to the proper claimants.What is Chapter 7 liquidation and Chapter 11 reorganization? When should each be used? Please choose one company that has gone through either type of bankruptcy proceeding and describe the circumstances leading up to the filing.An involuntary bankruptcy petition must be filed bya. The insolvent company’s attorney.b. The holders of the insolvent company’s debenture bonds.c. Unsecured creditors with total debts of at least $15,775.d. The company’s management.
