Indirect cost of bankruptcy


Here are the problems:

Q1. Which of the following is not an indirect cost of bankruptcy?

  • Legal Fees
  • Delayed Liquidation
  • Costs to Creditors
  • Loss of Customers

Q2. Which of the following is not an indirect cost of bankruptcy?

  • Loss of Suppliers
  • Fire Sales of Assets
  • Costs of Appraisers
  • Loss of Employees

Q3. Which of the following is not a direct cost of bankruptcy?

  • Costs to Creditors
  • Investment Banking Costs
  • Costs of accounting experts
  • Legal Costs and Fees

Q4. Which of the following industries is likely to have the lowest costs of financial distress?

  • Airlines
  • Computer Software
  • Biotechnology
  • Electric Utilities

Q5. Which of the following industries likely to have the highest costs of financial distress?

  • Grocery store
  • Semiconductors
  • Real estate
  • Utilities

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Accounting Basics: Indirect cost of bankruptcy
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