These are necessary to process the filing for bankruptcy, such as accountant’s and lawyer’s fee. Indirect costs false Fixed costs false Direct costs true Fixed assets false Single It is the least desirable option for a financially distressed company where assets are liquidated and the company is dissolved. Dissolution and liquidation true Operational contraction plan false Financial policies false Asset expansion policies false Single It is a corporate term that refers to the instances when a business fails to settle its balance due to its creditors. Financial stress false Financial management problems false Inability to pay debts false Financial distress true Single These are opportunity costs or the revenue that will be lost once the business ceases its operations. Direct costs false Indirect costs true Fixed costs false Product costs false Single This is a situation when a company’s assets exceed its debts, but may still be unable to pay for its balances due to lack of liquid assets. Flow-based insolvency true Poor company management false Value-based insolvency false Financial distress false Single This turnaround strategy might not be attractive to some companies because it entails the expansion of business operations through development of a new business line or acquisition of another business. Dissolution and liquidation false Financial policies false Operational contraction plan false Asset expansion policies true Single It occurs when a business has a negative net worth. Flow-based insolvency false Financial distress false Value-based insolvency true Poor company management false Single These are all symptoms of financial distress, except one. What is it? Failure to meet due dates of loans false Increase in sales true Frequent requests to restructure loans false Delays in submitting government compliance false Single This includes cutting down operations or departments in order to enable the business to focus on its most profitable unit. Dissolution and Liquidation false Asset Expansion Policies false Financial Policies false Operational Contraction Plan true Single The management may opt to revisit and revise ________________ of the company, which includes dividend and credit policies. Financial Policies true Operational Contraction Plan false Asset Expansion Policies false Dissolution and Liquidation false Single