A restructuring may involve which of the following?

A. A write-down of liabilities
B. Both B and C
C. A write-down of assets
D. A distribution to equity



Answer :

Final answer:

Restructuring in business can involve write-downs of assets and liabilities as well as distributions to equity holders.


Explanation:

Restructuring may involve a write-down of assets or liabilities. When a company restructures, it may need to reassess the value of its assets or debts, potentially leading to a write-down of their worth.

For example, if a firm decides to restructure/refinance long-term liabilities, it could involve changing the terms of loans or debts, possibly leading to a write-down of liabilities to reflect their new valuation.

Restructuring can also entail a distribution to equity holders, especially if the company is undergoing significant changes that impact its ownership structure.


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