Bankruptcy occurs when a company is unable to pay its debts as they become due, or has more debts than assets. It's a formal procedure in which an appointed trustee in bankruptcy takes possession of a business's assets and disposes of them in an orderly fashion.
Bankruptcy is a condition in which a firm (or individual) is unable to meet its (his) obligations and, hence, its (his) assets are surrendered to a court for administration.
Bankruptcy is the legal nonpayment of financial obligations.
Bankruptcy is the argument that expected indirect and direct bankruptcy costs offset the other benefits from leverage so that the optimal amount of leverage is less than 100% debt financing.
Bankruptcy is the legal procedure for individuals and business that cannot pay their debts.
Webster Dictionary Meaning
- The act or process of becoming a bankrupt.
- Complete loss; -- followed by of.
More from this Section
- Customer relationship doctrine
Customer relationship doctrine is the bank management strategy whose first priority is ...
- Subpart F.
Subpart F. is a type of foreign income, as defined in the U.S. tax code, which under certain ...
- Asset liquidity management
Asset liquidity management is a strategy for meeting liquidity needs, used mainly by smaller ...
- Main / Spread
Main / Spread is the difference between the buying and selling rates of a foreign exchange ...
- Agency securities
Agency securities are a securities issued by federally related institutions and U.S. government-sponsored ...