Question

When large firms file for bankruptcy: A) their benefit is that their creditors will be forced...

When large firms file for bankruptcy:

A)

their benefit is that their creditors will be forced by law to give up their claims on the firm.

B)

their creditors often try to seize the assets as soon as possible.

C)

their purpose is usually to nurse the firm back to health and enable it to face the world again.

D)

the proceedings involve costly delays and legal tangles, and the business continues to deteriorate.
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Answer #1

their purpose is usually to nurse the firm back to health and enable it to face the world again

the above is the answer..

because under bankruptcy, the balance sheet is cleaned and liabilities are settled helping company to start again

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