Final answer:
Chapter 7 bankruptcy allows a business to cease all operations, while many firms choose Chapter 11 to continue operating and reorganize. Chapter 11 allows restructuring of debts to potentially return to profitability. Therefore, the correct option is C.
Step-by-step explanation:
The procedure that allows a business to cease all operations when it is complete is known as Chapter 7 bankruptcy. Chapter 7 involves liquidation, where a business closes and sells off its assets to pay creditors. On the other hand, many firms file for Chapter 11 bankruptcy in the United States, allowing them to reorganize and continue operating with the goal of becoming profitable again. This is because Chapter 11 offers a chance to restructure debts, making it possible for businesses to retain their workforce, maintain customer relations, and potentially return to financial health through a court-approved plan.