This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ivables or
inventories. 2.Economic Activity — Especially economic
downturns – can contribute to the failure of a firm.
• If the economy goes into recession , sales
• In 1990s, a number of major Business Failures
such as Olympia & York (Real Estate), America
West Air Lines, resulted from over expansion & the
3.Corporate Maturity: A final cause of Business
Failure is corporate maturity. Firms, like individual
do not have infinite lives. Like a product , a firm
goes through the stages of birth, growth, maturity,
& eventual decline . # Voluntary Settlements
An arrangement between a technically insolvent or
bankrupt firm & its creditors enabling it to bypass
many the costs involved in legal bankruptcy
• The settlement is normally initiated by the debtor
firm, because such an arrangement may enable it t
continue to exist or to be liquidated in a manner
that gives the owners the greate...
View Full Document
This note was uploaded on 03/24/2012 for the course BBA SBM taught by Professor Goa during the Spring '09 term at East West University, Chicago.
- Spring '09