Final answer:
The statement about bankruptcy petitions is TRUE. Creditors can initiate an involuntary bankruptcy if the debtor fails to pay debts as they come due. Diversifying investments can reduce risk of total loss in cases of company bankruptcies.
Step-by-step explanation:
The statement regarding the bankruptcy petition is TRUE. A bankruptcy petition can indeed be filed against a debtor by a group of three or more creditors who hold unsecured claims that, in the aggregate, total at least the specified amount (which may vary with adjustments over time) and believe that the debtor is not paying debts as they become due. This is a form of involuntary bankruptcy under Chapter 7 or Chapter 11 of the Bankruptcy Code.
Corporate bond issuers are obligated to make payments to bondholders as per the terms agreed upon. If a bond issuer fails to meet these payments, the bondholders have a legal right to push the company into bankruptcy. This is designed to enable bondholders to recoup as much of their investment as possible through the liquidation of the company's assets. In the context of investment, having a diversified portfolio can mitigate risk, as not all companies will likely go bankrupt at the same time.