Under Chapter 11 of the Federal Bankruptcy Code, which of the following actions is necessary before the court may confirm a reorganization plan?
  A. Appointment of a trustee.
  B. Provision for full payment of administration expenses.
  C. Preparation of a contingent plan of liquidation.
  D. Acceptance of the plan by all classes of claimants.
  Answer:B
  B is corrent. Under Chapter 11 of the Federal Bankruptcy Code, a business may be allowed to continue its operations and keep its business assets. The court-supervised reorganization plan provides for payment of all or part of the debts over an extended period. The claims are divided into classes of similar claims so that they can be treated equally. For the court to confirm the reorganization plan, it must provide for full payment of administration expenses.
  A is incorrect. Under a Chapter 11 bankruptcy, although a trustee may be appointed for cause, a trustee is often not appointed.
  C is incorrect. There is no requirement of a contingent plan of liquidation.
  D is incorrect. The court does not require that all creditors or all classes of creditors accept the plan.