To discuss: Impact of bankruptcy on Person J, creditors, consumers, and retailers.
Explanation of Solution
Bankruptcy refers to the situation when an individual or the firm becomes unable to pay off its debt further. Bankruptcy is opted when there is no option left to the firm or the individual.
Bankruptcy affects the person along with their creditors, retailers, and customers. Individual persons will find it difficult to procure loans for a car or home after being bankrupt. They will lose customer and investor’s loyalty, retailers won’t provide credit purchase facility, and creditors will not get their payment in full.
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