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In Principle,when Does a Firm Become Bankrupt

Question 35

Multiple Choice

In principle,when does a firm become bankrupt?


A) When its equity value falls to zero
B) When a lender refuses to lend any additional funds to the firm
C) When its current ratio is less than one
D) When it is one day late paying a payment to a creditor
E) When a bankruptcy petition is filed with the court

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