Question

Edwards Farm Products was unable to meets its financial obligations and was forced into using legal proceedings to restructure itself so that it could continue as a viable business. The process this firm underwent is known as a:
A. merger
B. repurchase program
C. liquidation
D. reorganization
E. divestiture

Answer 1

Answer:

D. reorganization 

Explanation:

Reorganization Is when a bankrupt business restructures itself so that it can continue as a viable business. It involves restating the assets and liabilities of the firm.

A merger is when two companies come together to form a single company.

Liquidation is when the assets of a company are distributed to creditors. It marks the end of a business.

A divestiture is when assets or parts of a business is either sold or exchanged.

A repurchase is when the shares of a company are bought back from shareholders by the firm.

I hope my answer helps you.