Credit, Risk, and Bankruptcy
Please use the concepts you are studying this week, and do some outside research on the subject of credit laws, risk management, and bankruptcy. Write a 5-7 page essay to help a business manage its credit risk to avoid bankruptcy. Using examples from your research and your experience where applicable, comment on the following:
· What should a business organization consider when evaluating whether to borrow money (use credit)?
· What should a business organization consider when evaluating whether to loan money (extend credit)?
· When a business organization finds itself in a difficult financial position, what are some of the factors the organization should consider before declaring bankruptcy and how would these factors determine the type of bankruptcy that the organization might file?
Papers are expected to follow APA documentation rules.
Textbook and Resources
Roger LeRoy Miller and William Eric Hollowell. Business Law Text & Exercises. 7th edition, 2013. South-Western/Cengage Learning.