Which One of the Following Is a Direct Bankruptcy Cost

question 79

Multiple Choice

Which one of the following is a direct bankruptcy cost?

• A)company CEO's time spent in bankruptcy court
• B)maintaining cash reserves
• C)maintaining a debt-equity ratio that is lower than the optimal ratio
• D)losing a key company employee
• E)paying an outside accountant fees to prepare bankruptcy reports

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Definitions:

Starting and Ending Times

The designated times at which a specific event or activity begins and concludes, often referring to work shifts or business operations.

Stock-Based Incentive Programs

Compensation schemes that provide employees with stock options or restricted stocks, aiming to align their interests with those of shareholders.

Line-Of-Sight Problem

Refers to the difficulty employees may have in seeing how their individual efforts and roles contribute to the strategic objectives of the organization.

Executive Employees

High-level employees of a company who have significant decision-making powers.