MARIAMA DIA

GRACE MOUGONDO

DIANOUNE SARR

SARATA DIANE TINTO

WHAT CAN MAKE A FIRM GO BANKRUPT ?

SUMMARY
1. 2. 3.

Introduction Meaning of bankruptcy Causes or origins of bankruptcy
a.

Internal causes

4.
5. 6.

External causes Solutions Conclusion ANNEXES
b.

INTRODUCTION
 We

are in a business school so we are supposed to become manager or to manage a firm later.  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 » ???

 You

can assimilate bankruptcy to a failure, a crash, an insolvency, etc. is a legally declared inability or impairment of ability of an individual or organization to pay its creditors.

 Bankruptcy

ORIGINS OF BANKRUPTCY…
 There

are a lot of different ways to go bankrupt and it depends on the type of business you are talking about.

 Usually

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 before they loose too much money.

 The

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 debt and will have to file for bankruptcy if you have no way of paying off the credit card company.

 Imagine

 THE

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