In a voluntary settlement, one group of creditors having claims of $1,000,000 will be immediately paid 95 cents on the dollar. The remainder of the creditors will postpone payment 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:B
In a voluntary settlement, one group of creditors having claims of $1,000,000 will be immediately paid 95 cents on the dollar. The remainder of the creditors will postpone payment 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.