Question

Creditors accepting part payment of their claims amounts to -----

a. Reduction of share capital

b. Variation of shareholders rights

c. Compromise

d. Alteration of share capital

Answer 1

Answer:

Creditors accepting part payment of their claims amounts to ----- compromise

Answer 2

A) Reduction of share capital.

Explanation:

• Usually when the finances of the company are not up to the mark and it is not able to earn adequate profit to meet up company's expenses.
• Then there is only one way of saving the company is internal reconstruction before the liquidation of the company.
• In this company utilize all the reserves of the company and ask for more capital from the shareholders to save the company.
• In the same, the company asks creditors to accept part payment of their dues as the company is not able to pay them fully now.