CPA QUESTION Decal Corp. incurred substantial operating losses for the past three years. Unable to meet its current obligations, Decal filed a petition of reorganization under Chapter 11 of the...

CPA QUESTION Decal Corp. incurred substantial operating losses for the past three years. Unable to meet its current obligations, Decal filed a petition of reorganization under Chapter 11 of the federal Bankruptcy Code. Which of the following statements is correct?

a. A creditors’ committee, if appointed, will consist of unsecured creditors.

 b. The court must appoint a trustee to manage Decal’s affairs.

c. Decal may continue in business only with the approval of a trustee.

d. The creditors’ committee must select a trustee to manage Decal’s affairs.