BANKRUPTCY-RESEARCH.docx - COPING UP WITH BANKRUPTCY AMIDST...

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COPING UP WITH BANKRUPTCY AMIDST THE COVID-19 PANDEMICResearch paper presented toMs. Prescilla T. MolinyaweA Narrative Study in Partial Fulfillment of the Requirements forResearch 1Rhenalyn MangsatPatricia Monique MargalloChristine Joan E. SantelicesTrisha G. TaberdoMyka Joyce M. TrillanaDecember 2020
CHAPTER 1IntroductionThe Philippines' newly industrialized economy has been tipped as being among the mostpromising in the world, but doing business can a tricky task without the help of local experts.With the 12th largest population and the 43rd largest economy in the world, the Philippinescertainly has the scope for development. Entrepreneurship is considered crucial to a dynamiceconomy. Entrepreneurs create employment opportunities not only for themselves but for othersas well. Entrepreneurial activities may influence a country’s economic performance by bringingnew products, methods, and production processes to the market and by boosting productivity andcompetition more broadly. But every entrepreneur can experience bankruptcy, in its simplestterms, bankruptcy is a legal process that allows an individual or company to settle debts tocreditors. Contrary to popular belief declaring bankruptcy doesn’t automatically mean a businessor person is a failure. It just means that the debtor has taken it upon himself (or itself) to seekhelp in order to repay its debts and correct some bad decisions.Bankruptcy is often confused with insolvency, but the two words do not mean the samething. According to Debt.org, it is possible for you to be insolvent but not bankrupt, but it is notpossible for you to be bankrupt without also being insolvent. “Insolvency is the inability to paydebts when they are due,” Debt.org states. “Fortunately, there are solutions for resolvinginsolvency, including borrowing money or increasing income so that you can pay off debt. Youalso could negotiate a debt payment or settlement plan with creditors.“Bankruptcy is usually afinal alternative when other attempts to clear debt fail.”
Bankruptcy or insolvency are terms that entrepreneurs or company owners andexecutives would rather not hear and deal with, but they are realities in the often-fickle world ofbusiness, so it pays to at least have a basic grasp of their meaning.Bankruptcy is increasingly becoming a familiar word while the planet grapples with thecoronavirus pandemic. With most people still being advised to stay home, and businessesremaining shuttered because of lockdown orders from the government, it’s becoming more andmore difficult for these businesses to stay afloat and remain viable.With a pandemic temporarily closing many businesses and stifling consumer demand,whole industries, especially those that recently leveraged their balance sheets to take advantageof near-zero interest rates, are seeing their profits disappear virtually overnight, leaving too littlecash flow to cover debt payments owed to creditors.

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Term
Fall
Professor
Robelle maneja
Tags
Business, Bankruptcy, researcher, Severe acute respiratory syndrome

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