All of the following are true about voluntary liquidations except for
A) They can be conducted outside of court in a private auction.
B) They can be done within the protection of the bankruptcy court.
C) Creditors normally prefer liquidations to be conducted by the bankruptcy court.
D) A trustee is assigned to sell the debtor firm's assets as quickly as possible while obtaining the best possible price.
E) If the insolvent firm is willing to accept liquidation and all creditors agree, legal proceedings are not necessary.

Question

Quizplus · Accepted Answer

Creditors often prefer out-of-court liquidations because they can be faster and less expensive than court-managed processes. Court proceedings can be lengthy and costly, reducing the amount of money creditors ultimately receive.

All of the Following Are True About Voluntary Liquidations Except