Cargo Corp. has applied for Chapter 11 bankruptcy protection. In its filing, management failed to present a plan for handling the reorganization of the firm. At this stage, how long will it be before creditors can provide their own plan? No time, as management’s failure to present a plan gives creditors the right to present their own. 60 days. 120 days. 180 days.

Argon Inc. has filed for bankruptcy protection under Chapter 11. Which of the following represents a potential creditors’ committee? Bond holders’ committee. Employees’ committee Suppliers’ committee All of the above.

A ?work-out? is: A shareholder-adopted plan for the reorganization of a company preparing a Chapter 11 filing. A management-adopted plan for the reorganization of a company outside of bankruptcy. A creditor-adopted plan for the reorganization of a company within the Chapter 11 process. A creditor-adopted plan for the reorganization of a company outside of bankruptcy.

Y Co. is having some mild-to-serious financial difficulty. However, it has decided to voluntarily enter Chapter 11 bankruptcy. What is one of the primary reasons why the firm may have chosen to do so? To solve its financial problems before they become too serious. To rearrange any collective bargaining contracts that it has. To keep its creditors happy before they force the firm to file for Chapter 7 bankruptcy. To keep its suppliers happy before they force the firm to file for Chapter 7 bankruptcy.

SmallTime, Inc. is a corporation with $1 million in assets, mostly in real estate. What bankruptcy filing would likely be the best for the firm? A Chapter 11 “short-cut” filing. A Chapter 11 full filing, if the firm expects to have no assets after it files. A Chapter 7 liquidation, if it expects to have no assets after it files. A Chapter 13 filing, if it expects to have no assets after it files.

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