Which of the Following Is True Regarding Bankruptcy

Multiple Choice

Which of the following is true regarding bankruptcy?

A) Liquidation frequently is converted into a reorganization.
B) In a prepack, creditors agree to a reorganization plan prior to the bankruptcy filing.
C) Firms cannot file bankruptcy to escape long-term leases on closed stores.
D) Creditors of the firm may not initiate bankruptcy proceedings.
E) A party other than the current firm management must take control of the firm before it comes out of bankruptcy.