Question

Bankruptcy:____.

a. creates value for a firm.
b. transfers value from shareholders to bondholders.
c. technically occurs when total equity equals total debt.
d. costs are limited to legal and administrative fees.
e. is an inexpensive means of reorganizing a firm.

Answer 1

the answer is D

Step-by-step explanation:

it is D because A and E are very wrong and brackrupcy is when you have no money left. C us wrong because there is nothing equal of having not money, B is talking about something else so the only one left is D.