Asked by Zheng Casey on Jun 15, 2024
Verified
Although the courts usually permit bankrupt firms to continue in business, they protect creditors' interests by requiring:
A) that all disbursements be approved by the court.
B) that all checks be countersigned by a bankruptcy judge.
C) that a trustee oversees the company's operation while it is in bankruptcy.
D) All of the above
Bankruptcy Judge
A judicial officer who presides over court proceedings in bankruptcy cases, making decisions on matters within the bankruptcy law.
Disbursements
Payments made by a business, including operating expenses, dividend payments, and investments in assets.
Trustee
With respect to bonds, an organization that ensures compliance with the conditions set forth in the indenture. With respect to bankruptcy, a person who administers the bankrupt organization to ensure funds are properly handled.
- Understand the protection mechanisms for creditors' interests in bankruptcy.
Verified Answer
BD
Breshay DennisJun 15, 2024
Final Answer :
C
Explanation :
The courts often appoint a trustee to oversee the company's operation while it is in bankruptcy to ensure the interests of the creditors are protected. While disbursements must be approved by the court, they do not need to be countersigned by a judge. So option A and B are not correct. Therefore, the correct answer is C.
Learning Objectives
- Understand the protection mechanisms for creditors' interests in bankruptcy.