The Costs of Avoiding a Bankruptcy fiLing by a fiNancially

question 65

Multiple Choice

The costs of avoiding a bankruptcy filing by a financially distressed firm are classified as _____ costs.

• A)flotation
• B)direct bankruptcy
• C)indirect bankruptcy
• D)financial solvency
• E)capital structure

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Definitions:

Macroenvironment

The broader, external forces that affect the operations and performance of businesses and markets, including economic, political, and social factors.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group, influencing behaviors and perceptions.

Company Capabilities

The skills, resources, and strengths that allow a business to execute strategies and achieve its objectives effectively.

Country Culture

Entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and subtler aspects, which are trickier to identify.