Exam CFE - Law topic 1 question 17 discussion

C. Reorganization bankruptcy Explanation: In a reorganization bankruptcy, a business files for bankruptcy with the aim of restructuring its financial affairs and continuing operations as a going concern. This type of bankruptcy is typically filed under Chapter 11 of the U.S. Bankruptcy Code, which allows the business to propose a plan to reorganize and repay its debts over time while remaining in operation. The other options refer to different types of bankruptcy: liquidation (which is more about selling off assets to pay creditors), debt adjustment (which is not a standard bankruptcy term), and debt dismissal (which is not a recognized type of bankruptcy).