Accepting a plan for financial rehabilitation, Accounting Basics

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Accepting a plan for financial rehabilitation

Assignment:

Q1. Why do creditors usually accept a plan for financial rehabilitation rather than demand liquidation of the business?

Q2. Would it be a sound rule to liquidate whenever the liquidation value is above the value of the corporation as a going concern? Discuss.

Provide complete and step by step solution for the question and show calculations and use formulas.

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Accounting Basics: Accepting a plan for financial rehabilitation

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