Determine whether the actions described comply with the bankruptcy code, and select the option identifying whether the bankruptcy court will consider or disregard the action in the plan based on the grounds of fairness and feasibility.

Description

Will the Court Consider This Action?

Yes

No

As a part of the reorganization plan, Arjen plans to lay off $400$ employees and tighten control over its production facility.

Arjen$$s reorganization plan includes actions to market and advertise its products aggressively to an appropriate target audience with an intention to boost sales.

Arjen uses existing revenues to estimate operating conditions and cash flows in the plan.