According to signaling theory, Chapter 11 is a useful mechanism for screening inefficient firms out of debt renegotiation. Inefficient firms voluntarily choose Chapter 11 because:
a. the firm can be liquidated more quickly.
b. negotiations therein generally result in some value retained by shareholders.
c. creditors are protected from violations of the absolute priority rule (APR).
d. management can better signal a higher firm value within Chapter 11.
B
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Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges?
A. An employer who switches to a risk-based policy after hiring a disabled employee. B. An employer who sets guidelines for using waivers C. An employer who discriminates against workers over age 40 in providing pay or benefits. D. An employer who has risk-based insurance and then hires an employee with a disability E. An employer who does not have risk-based insurance
What is meant by adapting at the core?
A. smoothing B. buffering C. flexible processes D. independent strategies E. concurrence