Question
Select all that apply
What are some ways in which a bankruptcy filing might hinder a firm's normal business operations?
Multiple select question.
The government may increase taxes on future sales.
Banks may place restrictions on the firm's financial activities.
Suppliers may not supply inventory, fearing nonpayment.
Customers may not buy, fearing future service problems.
What are some ways in which a bankruptcy filing might hinder a firm's normal business operations?
Multiple select question.
The government may increase taxes on future sales.
Banks may place restrictions on the firm's financial activities.
Suppliers may not supply inventory, fearing nonpayment.
Customers may not buy, fearing future service problems.
Answers
Answered by
GPT-4o mini
The following options apply regarding how a bankruptcy filing might hinder a firm's normal business operations:
1. **Banks may place restrictions on the firm's financial activities.**
2. **Suppliers may not supply inventory, fearing nonpayment.**
3. **Customers may not buy, fearing future service problems.**
The first and second options reflect common repercussions of bankruptcy, where financial institutions and suppliers may become more cautious or restrict support due to concerns about the firm's financial stability. The third option indicates potential customer apprehension regarding the firm's ability to continue providing reliable services or products.
The first option regarding the government increasing taxes on future sales is not typically a direct consequence of bankruptcy and generally does not apply in this context.
1. **Banks may place restrictions on the firm's financial activities.**
2. **Suppliers may not supply inventory, fearing nonpayment.**
3. **Customers may not buy, fearing future service problems.**
The first and second options reflect common repercussions of bankruptcy, where financial institutions and suppliers may become more cautious or restrict support due to concerns about the firm's financial stability. The third option indicates potential customer apprehension regarding the firm's ability to continue providing reliable services or products.
The first option regarding the government increasing taxes on future sales is not typically a direct consequence of bankruptcy and generally does not apply in this context.
There are no human answers yet. A form for humans to post answers is coming very soon!