Final answer:
A firm that takes advantage of a reorganization must have the plan approved by creditors, can issue new securities, and continues to operate. Bankruptcy reorganization allows firms to access new capital and restructure finances while remaining in business.
Step-by-step explanation:
Which of the following describe a firm that takes advantage of a reorganization? The correct descriptions are that the business must have its reorganization approved by its creditors and it is allowed to issue new securities. Additionally, the firm continues to operate, which is often the primary goal of reorganization, to allow the company to emerge stronger and more financially stable from its challenges.
Firms choose various methods to access financial capital, such as borrowing from banks, issuing bonds, or issuing stock. Each method comes with its advantages and disadvantages regarding control and financial obligations. Firms undergoing reorganization often do so under a specific chapter of bankruptcy which allows them to remain operational while they restructure their operations and finances to be viable in the long term.