单选题 Europe is desperate to succeed in business. Two years ago, the European Union's Lisbon summit Set a goal of becoming the world's leading economy by 2010. But success, as any new age executive coach might tell you, requires confronting the fear of failure. That is why Europe's approach to bankruptcy urgently needs reform.
In Europe, as in the United States, many heavily indebted companies are shutting up shop just as the economy begins to recover. Ironically, the upturn is often the moment when weak firms finally fail. But America's failures have a big advantage over Europe's weaklings: their country's more relaxed approach to bankruptcy.
In the United States the Chapter 11 law makes going bust an orderly and even routine process. Firms in trouble simply apply for breathing space from creditors. Managers submit a plan of reorganization to a judge, and creditors decide whether to give it a go or to come up with one of their own. Creditors have a say in whether to keep the firm running, or to liquidate it. If they keep it running, they often end up with a big chunk of equity, if not outright control.
But shutting a bust European company is harder in two other ways. First, with no equivalent of Chapter 11, bankruptcy forces companies to stop trading abruptly. That damages the value of the creditors' potential assets, and may also cause havoc for customers. Second, a company that trades across the European Union will find that it has to abide by different bankruptcy laws in the 15 member states, whose courts and administrators may make conflicting and sometimes incompatible stipulations.
The absence of provision for negotiations between companies and creditors increases the temptation for government to step in. When governments do not come to the rescue, the lack of clear rules can lead to chaos. As a result of all this, Europe's teetering firms miss the chance to become more competitive by selling assets to others who might manage them more efficiently. Their sickly American rivals survive, transformed, to sweep the field.
An opportunity now exists to think again about Europe's approach to bankruptcy. The European Union is expected to issue a new directive on the subject in May. Germany has begun to update its insolvency law. And last year Britain produced a white paper saying that a rigid approach to bankruptcy could stifle the growth needed to meet Lisbon's goals.

单选题 One of goals set by the European Union's Lisbon summit is to
[A] strive for the lead in the world's economy.
[B] achieve great success in business.
[C] come up with a plan for reorganization.
[D] prevent excessive economic growth.

单选题 According to text, what is beyond the ability of Europe's failing firms now is
[A] to defect American competitive rivals.
[B] to comply with different laws.
[C] to escape the control of governments.
[D] to negotiate with their creditors.

单选题 Besides applying for breathing space from creditors, managers in American firms can also
[A] damage the creditors' potential assets.
[B] request the government's interventions.
[C] take advantage of legal procedures.
[D] talk with their stern debtors abroad.

单选题 It can be concluded from the text that the absence of relevant laws concerning bankruptcy may more often than not result in
[A] dangerous confusion.
[B] desperate conflicts.
[C] abrupt reforms.
[D] potential threats.

单选题 Which of the following is TRUE according to the text?
[A] The achievement of Lisbon's goals would precede the elimination of chaos.
[B] The best way to help European firms may be to make it easier for them to fail.
[C] It is high time that the rigid bankruptcy laws in the U. S. were radically changed.
[D] Shutting a weak American company means ending up with a big chunk of assets.