Question: 1) A firm may be technically insolvent even though it has a positive net worth. True or False 2)Bankruptcy refers to a circumstance where a

1) A firm may be technically insolvent even though it has a positive net worth.

True or False

2)Bankruptcy refers to a circumstance where a firm is unable to pay its bills as they come due

True or False

3) Establishing a creditor committee to run the business is a type of in - court settlement

True or False

4) The three highest priority levels in bankruptcy include the cost of administering the proceedings , past wages due to workers, and overdue interest payments to creditors.

True or False

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