SARATA DIANE TINTO
WHAT CAN MAKE A FIRM GO BANKRUPT ?
1. 2. 3.
Introduction Meaning of bankruptcy Causes or origins of bankruptcya.
External causes Solutions Conclusion ANNEXES
are in a business school so we are supposed to become manager or to manage a firmlater. As a manager, there are some things that you musn’t ignore and you have to be aware of what can make a firm go bankrupt.
WHAT IS « BANKRUPTCY » ???
can assimilate bankruptcy to afailure, a crash, an insolvency, etc. is a legally declared inability or impairment of ability of an individual or organization to pay its creditors.
ORIGINS OF BANKRUPTCY…
are a lot of different ways to go bankrupt and it depends on the type of business you are talking about.
more than not a company files due to bad management practices.Occasionally it is due to embezzlement but more often than not it is just that they have really unqualified people at the top of the firm The product can be the origin An internal crisis can be the origin Concerning
the shareholders, if their operating costs are higher than their income, they lose more each year than they gain. It’s more interesting for them to let the firm go bankrupt beforethey loose too much money.
debts. If you can’t pay them, you’re obliged to let your firm go bankrupt having a credit card. You lose your job but still use your credit card. You are in debtand will have to file for bankruptcy if you have no way of paying off the credit card company.
BANKRUPTCY OF A CUSTOMER
companies do not pay their purchases at once.Every company has more or less long deadlines. So a retail chain can obtain payment times going 120 days after the delivery with his suppliers. Let’s suppose now that a customer who was delivered, is...