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B is corrent. Under a Chapter 11 reorganization normally a debtor is allowed to remain in possession of its assets. The purpose of a Chapter 11 reorganization is to keep the financially troubled firm in business.
A is incorrect. The courts aren’t required to appoint a trustee. The court will only appoint a trustee if one is requested by a party in interest to take over the debtor’s business. The court will approve such a request when there is evidence of fraudulent actions by the debtor, gross mismanagement of the business, or it appears that the takeover by the trustee would be in the best interest of the debtor’s estate.
C is incorrect. Chapter 11 business reorganizations permits both voluntary and involuntary proceedings.
D is incorrect. There is no such relationship between the provisions of the Bankruptcy Code and the registration requirements of the federal securities laws.