Final answer:
A firm undergoing reorganization may be allowed to issue new securities and continue operations, with the process usually needing creditor approval. Contrary to liquidation, it does not have to cease operations or sell off assets.
Step-by-step explanation:
When a firm takes advantage of a reorganization, typically during a bankruptcy process, it might have several characteristics such as being allowed to issue new securities and continuing to operate. However, it does not necessarily have to liquidate its assets and end its operations.
In fact, reorganization is meant to allow the firm to restructure its finances and operations, with the aim of becoming a viable business entity again. Moreover, for the reorganization to proceed, it usually requires the approval of its creditors; this is a plan that outlines how the firm will deal with its debts and business moving forward. Liquidation, on the other hand, would entail selling off assets and potentially ceasing operations, which is not the goal of reorganization.