In a voluntary settlement, each creditor will be paid 20 cents on the dollar in 120 days. The remaining 80 cents on the dollar will be paid within an additional 60 days. This is an example of
A. a composition.
B. a combination of a composition and extension.
C. an extension.
D. a liquidation.
Answer:C
In a voluntary settlement, each creditor will be paid 20 cents on the dollar in 120 days. The remaining 80 cents on the dollar will be paid within an additional 60 days. This is an example of
A. a composition. B. a combination of a composition and extension. C. an extension. D. a liquidation.