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Suppose That a Bankrupt Firm, While in the Process of Developing

Question 26

Multiple Choice

Suppose that a bankrupt firm, while in the process of developing a reorganization plan, is allowed to buy goods on credit and borrow money to finance needed working capital. Such an arrangement is called


A) debtor-in-possession financing.
B) prepack bankruptcy.
C) workout by creditors.
D) appointment of receiver.

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