A financial analysis of the decision to terminate a business enterprise Cover Image

Финансов анализ на решението за прекратяване на стопанско предприятие
A financial analysis of the decision to terminate a business enterprise

Author(s): Emil Kalchev
Subject(s): Economy
Published by: Стопанска академия »Д. А. Ценов«
Keywords: termination; restoring с high level of debt; liquidation; bankruptcy; financial difficulty

Summary/Abstract: Rules for the origination and termination of businesses have proved themselves during the millennial evolution. They are a guarantee for achieving the stakeholders’ goals of these groups, narrowing them down to maximize their net cash flows. Since economic rationality in the origination of business is clarified thoroughly in literature, what it is at its termination is more interesting. The report begins with a description of the main interested groups and the conflicts arising between them when business is in financial difficulty. After outlining the specific application of evaluative methods within the framework of termination decisions, possible scenarios for the actions of owners and creditors are presented. They are combined into two groups – the continuation and termination of business. Termination can be accomplished through liquidation or bankruptcy procedures. These procedures are set out schematically. Until their completion the enterprise owes corporate tax, the characteristics of which are determined at the end of the report.

  • Issue Year: 22/2012
  • Issue No: 4
  • Page Range: 94-117
  • Page Count: 24
  • Language: Bulgarian