CORPORATE FINANCE- ACCESS >C<
12th Edition
ISBN: 9781307447248
Author: Ross
Publisher: MCG/CREATE
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Chapter 30, Problem 2CQ
Summary Introduction
To explain: Benefits of financial distress.
Financial Distress:
Financial distress is a situation where the funds or revenue generated by the company through its cash flow activities is not sufficient to meet its current business obligations. , It is the situation when the firms is not being able to pay its debts because neither the operating nor financing and nor the investing activities of the company are able to meets its obligations and run its business smoothly. Therefore the acute shortage or lack of funds leads to financial vacuum being created in the firm which is known as financial distress.
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