Bankruptcy Essays (Examples)

Bankruptcy eform Act of 2005 and Explaining Why Congress Instituted This Act
When an individual or a firm comes to a financial situation where its assets are unable to cover the debt or liabilities and there is no capital or asset that can be liquidated to pay the debt the firm or person becomes insolvent. Formerly there were prison sentences for debtors, but the laws from the medieval periods have been amended. In the United States the person or firm that reaches the stage of bankruptcy can file for an absolute dilation of credit by being declared bankrupt. Legal motions have to be made in the appropriate court of law that deals with the issue. This is available to both the corporate and individual debtors with the first legislation coming to be passed in 1800. Individuals incurring debts from the lenders have put the lenders in a spot by taking recourse…

It provided for fast proceedings, encouraged debtors to reschedule their obligations rather than liquidate and helped creditors recover their claims against bankrupt estates. The 1994 Act also created the National ankruptcy Commission, charged with investigating further modifications of the bankruptcy law. Latter laws, however, disregarded many of the Commission's recommendations. In April 2005, President George W. ush signed the ankruptcy Abuse Prevention and Consumer Protection Act of 2005. Many experts consider this the most extensive rework of the U.S. bankruptcy law since 1978. The most important changes introduced in this Act concern individual bankruptcy cases, small business bankruptcies and cross-border insolvency cases (AC Amega, Jackson).
II General Concept

ankruptcy is governed by the ankruptcy Code, which became effective in 1978 (Empowerment Zone 2007). It was amended in 1994 and then in 2005. The 2005 amendments formed the ankruptcy Abuse Prevention and Consumer Protection Act of 2005 or APCPA. This Act ignited…

The same officials that controlled the municipality prior to the filing continue to run it, and the bankruptcy court has no authority to intervene or to deviate from their authority. Note that since the bankruptcy process changes nothing in the locality's political structure. Therefore, the incentives that promoted local spending and caused the bankruptcy to begin with, remain in force.
This explains why municipalities that file for Chapter 9 tend to return to insolvency after only a few years. The city of Mack's Creek, for example, filed for bankruptcy in 1998, then for a second time in 2000, and then it contemplated a third bankruptcy in 2004. The city of Westminster, Texas filed on 2000, and only 4 years later filed again. The city of Prichard, Alabama filed for bankruptcy at the end of 1999, came out of the bankruptcy only in 2007, and now, talks of a new bankruptcy…

Similarly, establishing payment plans with vendors may help reduce monthly costs and free up extra cash. The benefit of such restructuring is that it would allow the company to avoid the highly invasive Chapter 11 process, where there is a loss of control as creditors and a court get to weigh in on company operations. The downside of debt restructuring is that Interstate would still have to pay its debts in full, and quite likely much more in the long run, as interest accrues.
Another option for Interstate would be to find ways to free up or generate extra cash. The company could sell assets, particularly assets that are not critical to core operations, or lay off some of its workforce. The advantage of this process is that it can improve cash flow without accruing additional debt, and Interstate did pursue these options on a limited basis (Twitty). The downside…

ankruptcy of WomenFirst Health Care, Inc.
Women First HealthCare, Inc. entered the American business scene in 1996 and its declared mission was to "to help midlife women make informed choices regarding their health care and to provide pharmaceutical products" and, additionally, to provide specific pharmaceutical products to meet the needs of women over forty years. In this sense, the company developed several products, including hormone treatments, meant to improve the life condition of middle- aged women.

Even if, in the beginning, there seemed to be a highly potential market segment that could have been profitably exploited and even if a brief analysis in 2001 showed a significant rise in the stock quotations, the company filed for bankruptcy in 2004, only to end a period of continuous losses and accumulated debts. Had we not had a look at some documents and had we not analyzed the actual happenings, we might have believed this…

Bankruptcy may occur when people or businesses that are financially-distressed may have their debt eliminated in part or altogether. The number of bankruptcy filings for the fiscal year ending March 31, 2003 was ~1.6 million in the United States alone (Levy and LaGana). Common types of bankruptcy include filing Chapter 7, 11, 12, or 13. Chapter 7 is the most common type of bankruptcy and may be used by people or businesses. Chapter 13 bankruptcy is limited to people only. Chapter 11 and Chapter 12 bankruptcy are much less common and will not be discussed in this report.
With a Chapter 7 bankruptcy, a court-appointed trustee will divide the debtor's property into "exempt" and "non-exempt" property (Taylor). The trustee will sell all of the debtor's non-exempt property and use the money to pay off the debtor's unsecured creditors. Secured creditors are protected by their security interest in the debtor's property (called…

bankruptcy?
There are essential two primary purposes for the existence of federal bankruptcy laws. The first purpose is to provide debtors with a legally recognized method for discharging their debt and affording said debtors with an opportunity for a fresh start financially. The second purpose is to provide creditors with protection of their interests in the estate of the bankrupt party. In all bankruptcy, all debts are listed and creditors are categorized as either secured or unsecured. Secured creditors enjoy a better position relative to any assets in the bankrupt estate as they have an enforceable interest in said assets. Bankruptcy, depending on the type utilized by the debtor, can either erase the indebtedness of the debtor or allow the debtor additional time to satisfy his debts without interference from his creditors.

What is a lien. Give an example.

In bankruptcy filings liens, claims against property that are filed in order to…

Discriminate Analysis and Other Models to Predict Bankruptcy
Type of Data Used

Selection of Keywords

Authenticity and Validity

Methods Used for the Prediction of Bankruptcy

Discriminant analysis

Logit analysis

Neural networks

Distance to Default

There has been a constant increase in the attempts that are made to predict bankruptcy because of the deteriorating consequences that are associated with this phenomenon. These consequences include the following: The negative social and economic consequences for the investors and creditors who are associated with the bankrupted organization. The social and economic consequences that the competitors and government, who are associated with the affected organization, would confront. This research will explore various methods that are used for the prediction of bankruptcy. It will highlight the functioning of these models. In addition to that, this paper will also list down the advantages and disadvantages of all of the discussed models as well.

Using Discriminate Analysis and Other Models to Predict Bankruptcy

Introduction

There has been a constant…

Personal Bankruptcy
The context of challenging economic times has resulted in sharp increases in the rates of personal bankruptcies filed in the United States (Athreya, 2004). Personal bankruptcy happens when individuals use credit to obtain assets which they are not able to fully pay for because of growing debts due to interest. Interestingly, households generally tend to increase their holdings of debt relative to income, meaning that as household income increases, so does debt. There is an epidemic of over-consumption in the United States, where needs are not distinguished from wants, and instant gratification is easily provided with a swipe of a credit card. Individuals are resorting to borrowing money to pay debts, which creates a cycle that inevitably spirals out of control if not attended to. However, stating that overconsumption is the cause of personal bankruptcy is over-simplifying the matter, as there are several factors that may be involved in…

The recent impositions on personal bankruptcies attracted the attention but the legal experts opined that new rules could have extensive effects. In common, in the words of a bankruptcy lawyer Jon Schneider of Goodwin Procter in Boston, "There is probably going to be a raft of filings in September to avoid this new law." (Law could trigger Chapter 11 surge) D.J. Baker of Skadden Arps a New York lawyer, representing supermarket chain Winn-Dixie in its reorganization opined that these changes will make some companies to fail in Chapter 11.
James Spryaregen of Kirkland & Ellis in Chicago forecasts that the new rules will make it more stringent to raise sufficient financing in bankruptcy and he visualized more liquidation. The Companies subject to Chapter 11 will only find one and half a year during which the management alone can entail a plan for managing a reorganized company. Presently the Judges can…

Continental Bankruptcy
How can one tell if a company is about to go under? There are at least two ways to answer that. One answer (which is usually not terribly precise) is the long-range one. The other is the (usually far more precise) short-term one. This paper provides at least both long-term and short-terms analysis of the Continental Airlines bankruptcy in 1990, relying for the former on an analysis of the state of the American airlines industry in 1990 and for the short-term specific economic information relevant to Continental at the time.

The major overall economic element affected the entire American transportation industry in 1990 (this included not simply the airlines industry) was the issue of deregulation. For many years, the transportation system of the United States existed within an economic system of a high degree of regulation. That this should have been so should not surprise us if we look only…

The other factors are the increased level of expenditure and mismanagement of government revenue.
While Egypt experienced difficulties in servicing of its debts, the European creditors would not allow the country time. In 1875, Ismail shelved payment of interest on loans which forced European creditors, ritain and France, to appoint two people to represent their interests through negotiating new agreements. Egypt continued to service the debts faithfully to an extent that 80% of the country's revenue went to servicing of national debt. The numerous difficulties for Egypt to service the national debt contributed to increased European intervention and subsequent occupation. As European creditors used this as a means of interfering with Egypt's affairs, the Egyptian government was angered, which resulted in more trouble with the European nations and the eventual ritish invasion of Egypt.

In conclusion, Egypt's bankruptcy and occupation is attributed to various factors, especially ritish imperialism in the 19th…

Family Personal Bankruptcy
Traditional sociological models of normative conformity suggest that those who most comply with presumed cultural expectations would be least likely to turn to practices that suggest a failure of their standing. Being in the midst of a normative storm, however, changes the very nature of the environment and even the conditions of those who are living through the commotion. Theoretical models, including social systems theories, can be particularly susceptible to these issues since they are based on the idea that the parts and interactions between those parts are vital for understanding what is happening and what might happen. What this means for people and their finances is not yet clear though they are often tied to business expectations in general (Granovetter, 2005: 34).

evertheless, it can still be safely assumed that if the particularly players (be they individuals, families acting as one, businesses, corporations or even nation-states) were effectively…

3.

Data

The data has been collected from a number od sources. Each year figures on the sale of Chrysler cars is released. The performance of the firm is being assessed using the number of cars sold by the firm each year. This is shown in the first column of table 1 below. The data was taken from a number of different news sources and correlated. The second column, the change in sales has been calculated from the sakes figures, and will provide data which may be used in the assessment.

Three sets of independent variables were collected. The first is the total number of vehicles that were produced in the USD in each of the years, in thousands. The second independent variable is the cost of gasoline. This has been assessed as the cost in cents on a per mile basis, given at current prices. Both the production levels and cost of…

" When a person files for bankruptcy, a person's trust, conscience, moral responsibility and accountability are all jeopardized.
Trust

Trust has always been an important factor in any credit transaction. With the increase of informal credit sales such as credit cards, trust is crucial between the debtor and the creditor for the liquidity of the transaction. In earlier days, economic trust was interpreted as strong as other forms of human interaction such as neighborliness, friendship and marriage.

Economic trust was not thought of as a purely pragmatic relationship but was applied to a much broader spectrum of necessary social interaction. But, with declining morals in the country, it has become more acceptable to break this trust by filing bankruptcy when personal debts are too large.

Robert South writes, "without (trust) there can be no correspondence maintained either between societies or particular persons."

The basis of trust in promises and all other forms of human obligation…

Kevin J. Delaney's book "Strategic Bankruptcy: How Corporations and Creditors use Chapter 11 to their Advantage" clearly illustrates the sociological ramifications of Chapter 11 bankruptcy. Delaney argues that bankruptcy has become a legitimate business tool that is often used by important players like Texaco and Continental Airlines, among a wide variety of others. Delaney notes that Chapter 11 is often used to address a variety of social issues. This interaction reveals a great deal about the complex and powerful connections that exist between law, economics, and sociology in American society.
Strategic Bankruptcy chronicles the recent use of bankruptcy law as a legitimate business strategy by corporations. In the book, Delaney chronicles the cases of companies like Texaco, Johns-Manville, and Continental Airlines. He argues the Chapter 11 has been used extensively by businesses for a variety of political and organizational ends. These include defeating lawsuits or reducing the amount of compensation that…

SWISSAIR'S (EX NATIONAL SWISS AIRLINES) ANKRUPTCY
On October 2, 2001, dozens of aircraft stood grounded at Zurich Unique Airport. Flights could not take off due to the simple lack of cash flow. Swissair, the airline that flew the flag and pride of the Swiss people, had declared bankruptcy. While many people knew that Swissair was ill, maybe even very ill, no one ever thought it could reach this level of gross humiliation. Passengers were left stranded with valueless tickets, and 70 years of the Swissair brand's goodwill totally disintegrated in a matter of hours.

This paper analyzes and examines the multitude of issues related to Swissair's bankruptcy. Part II discusses the evolution and impact of Swissair's bankruptcy for the hospitality, hotel, and restaurant businesses. In Part III, Swiss, the new National airlines company is reviewed. Lastly, this paper concludes with recommendations for improving the likelihood of success for Swiss.

SWISSAIR'S ANKRUPTCY AND ITS…

New Bankruptcy Law
hen the next credit card representative comes to campus, trying to market the newest MasterCard or Visa -- run away! Congress has made it more difficult for individuals to declare and extricate themselves from bankruptcy. Although the idea the new bankruptcy legislation is supposed to support, namely that consumers must become more fiscally responsible, may seem neutral on its surface and merely designed to reign in an overspent America where "the average credit card balance is $12,000. And 10 to 15% of households with credit card debt are barely able to pay it off," in fact this new piece of legislation advances a number of factional interests in Congress at the expense of other interests. (illis, 2005) hile the financial industry and credit card companies may be pleased by the 2005 legislation, consumer groups and legal action groups are not.

The image of creating a more responsible and thrifty…

Shift to Activity-Based Accounting
Discuss the Information Systems implications of this case. How do the business processes and the Information Systems relate to solve the problems encountered?

The devolution and dissolution of the corporation known as orldCom, due to accounting fraud rocked the business world. However, there is at least one potential solution for what is left of the company. The company has shifted from spreadsheet accounting to using activity-based software that measures corporate productivity according to business units in a more accountable fashion.

Partly to prevent future accounting abuses and partly as damage control, the former company known as orldCom, now re-christened with its old name MCI, has adopted this new cost-analysis software. MCI is attempting to use information systems innovation, combined with more conscientious managers, to correct its old problems of insufficient accountability of the financial staff. Tom Spengler, author of the article "Back in Control," notes that, lost amidst…

gathered an understanding of some aspects of finance and am writing this paper on the topic of finance and bankruptcy. I have worked in the field of retail and enjoyed the training for assistant manager that was received. I also have taken several finance classes in college as well as an advanced finance class at the high school level, which helped prepare me for this learning experience regarding the topic of bankruptcy. I am young enough to understand and participate in today's economic climate while being old enough to understand the ebbs and tides that are a historical fact of the economy. I have a desire to learn as many possible aspects and facts as possible about the topic of bankruptcy so that the I will be better equipped for the more advanced university level finance courses that may be required before graduation.
I will draw on several factors that…

A woman by the name of Ann Elk is filing bankruptcy. She ostensibly owes about $5,000 to a creditor by the name of Orbit Bank. Orbit Bank has contracted with InMotion Debt Collectors to retrieve that debt. Concurrent to this, Ann starts to file a Chapter 7 bankruptcy. An automatic stay, thus, is then issued to help keep the creditors at bay and regulate what they are allowed to do. Despite this, InMotion initially demands that she pay $1,000, which Ann does. Subsequent to this, InMotion files a lawsuit demanding the entire amount due. While InMotion is being aggressive, Ann’s lawyer is wise to tell her to disregard the lawsuit. Analysis
Ann’s rights under the bankruptcy code are certainly being trampled on by InMotion. The question of just how much of this is going on would depend on what the automatic stay relating to the Chapter 7 motion went into effect and…

K-Mart's Bankruptcy -- a Case Study
hy did the store synonymous with low prices for relatively high quality, the famed purveyor of blue-light specials, fall into dissolution and financial despondency and eventual bankruptcy in January of 2002? (CNN, 2002) The fall of Kmart the mega-store cannot be pinned simply to single internal or external phenomena, although the company was misguided and mismanaged on multiple levels, and the economy was enduring one of its rockiest retailing passages at the time. hat left Kmart "singing the blue-light blues," (LaMonica, 2002) can be subscribed to a variety of marketing, positioning, and branding phenomenon, as well as economic miscalculations and the company's leadership.

In 2002 analysts later said that Kmart management had made two big mistakes during the holiday shopping season when retailers consistently attempt to land themselves in the 'black' after 'black Monday,' the season between Thanksgiving and the New Year. Instead, Kmart had cut…

First, the decreasing subscription of land-line telephone service due to the proliferation of cellular technology. Since 2001, there has been a steady decline in market share of land-line telephones as more and more users chose to use cell phones as their permanent phone provider. WorldCom, with its specific focus still on land-line services has created a multitiered strategy to promote land-line use. They emphasize new packages that are more affordable than older packages, with shorter time commitments, as well as more land-line services than previous offers. WorldCom believes that this strategy promotes greater diversification of land-line services across many different platforms that will increase the overall usage and service provision for American consumers. The second major issue that impacts WorldCom's future strategic vision is the emergence of VIP services as a mode of land-line phone services. VIP (Voice over IP) are internet-based telephone services that utilize the internet connections…

Business
Under the Bankruptcy Code, Janet is obliged to file several documents and schedules. These include a certificate of credit counseling, evidence of employer payment 60 days before the filing, a statement of monthly net income and anticipated income increase or expenses after filing, and a record of interest in terms of federal or state qualified education or tuition accounts. These documents must be filed 60 days prior to filing the Chapter 7 petition.

If this deadline is missed, the likelihood is that the filing will be dismissed or modified to a different type of filing, which could have financial implications for Janet.

To determine whether Janet is involved in substantial abuse of Chapter 7, the court would determine whether the debts are primarily consumer oriented. If the income exceeds the minimum threshold determined by 11 USC 702 (B) of the code, it would be considered as substantial abuse. If the current monthly…

GM has lowered forecasted earnings from its December plan to around 11.5 million U.S. sales annually, "But even those lower sales numbers look optimistic in a year when most analysts predict the U.S. market will struggle to top 10 million units," (Lassa 2009:1). There still are large risks that the company will not meet even minimum projections and fall under. Also risky from outsider's perspectives, is CEO Henderson's move to not alter GM's product planning group, "Yet it has routinely missed major product trends and rarely sets them," (Welch 2009:2). This has serious potential consequences if GM can't get more life into its product planning.
Summary Scorecard

Perspective

Desirability of Alternatives

Financial

Great reduction of production costs with downsizing and outsourcing.

Customer

Gives the customer new models which are more economically feasible as well as lighter material -- meaning more gas efficient as well.

Internal Business Process

Cut production costs means lower unit costs, ensuring a more profitable…

WorldCom Noose Getting Tighter: Bankruptcy Tough to Avoid" illustrates dramatic business news, relevant to current issues in the telecommunications slump. The WorldCom bankruptcy declaration is also personalized because it reminds the reader of the fragility of the economy as well as the possibility of individual financial ruin.
The fact that the $3.9 billion fraud disclosure was a "record" indicates controversy and drama, no doubt conflict-filled. Because this dollar amount is clearly stated as being a "record" signifies the novelty of this particular incident. That banks could "force" WorldCom into default depicts actual action in the business world. Newsworthiness of this piece increases with the stress on the sullying of the WorldCom name, which is "permanently scarred," and "damaged beyond repair."

Investors are angry, notes the journalist: the issue is personalized, identifiable, and conflict-filled. The mentioning of 20 million customers further drives home the fact that you, the reader, are directly affected.…

causes of business failure and bankruptcy has, in the past, primarily focused on the financial symptoms of the failure and usually not the underlying causes. When a study takes into account other, non-financial, factors they usually limit themselves or focus only on specific kinds of businesses. As a result there has never been a comprehensive approach to studying the causes of bankruptcy in relation to the behavior of the company and the financial situation at the time. Therefore the authors of the article "Failure processes and causes of company bankruptcy: a typology," have attempted to provide the first all-encompassing study on the causes of bankruptcy.
In order to accomplish this goal the researchers chose to study 12 Belgian companies that have filed for bankruptcy as the source material for their case studies. The companies selected varied in size, age, and industry and were only chosen if the appropriate data could…

Carillion Introduction
Carillion was a construction and facilities management company that went bankrupt in January 2018, after experiencing financial difficulties during 2017. This paper will analyze the company’s financial statements in order to examine this bankruptcy, specifically to use the techniques of financial statement analysis to ascertain what went wrong with Carillion, and how it ended up in bankruptcy.
There are three key questions that will be answered in this analysis. The first is how liquidity affected the company. Bankruptcy typically arises from a liquidity crisis, so this analysis will investigate the structure of the liquidity issues, and perhaps determine if there were signs prior to 2017 of a looming crisis, or that management’s response to the crisis was poor. The second question that needs to be answered is what the effect of bad management was on the company’s financial health. The company was continuing to acquire building contracts; its failure was not…

Iceland's Economic Crisis
Web

Iceland's bankruptcy

The purpose of banking in Iceland: speculation and hedging

The central issue: too much too soon

Iceland's Transition

eplicating Wall Street

Taking on foreign "assets" at a ratio to GDP of 10:1

Is debt an asset?

Easy credit and the role of the Housing Financing Fund

Low interest rates

f. Inflation

g. The end of short-term financing in the wake of Lehman's collapse

h. The bubble bursts

The plight of the average citizen

j. Aliber's speech

k. Left holding the bag

The effects of financial deregulation

A prime opportunity for shorting

Iceland and Nationalization

Not Bailing out the Banks

Introduction: Statement of Purpose

The bankruptcy of Iceland in 2008 can be explained in one line from Michael Lewis's Boomerang: Travels in the New Third World. The line is stated by a representative of the International Monetary Fund (IMF) who is tasked with assessing whether Iceland should be bailed out with a loan. Iceland, historically populated with "rational human beings" was now at the mercy of the…

The first was the motivation on the part of Ebbers and Sullivan. The second was the complicity of employees within orldCom's accounting department. The third was the complicity of the external auditor, Arthur Andersen. In order to prevent such frauds from occurring, these different factors should be addressed. ith respect tot Ebbers and Sullivan, two problems occurred that should be prevented in future.
The first is the heavy emphasis on option-laden compensation. This created an incentive for Ebbers to manipulate the company's stock, as his options were under water. A greater emphasis on hard salary and bonuses would partially address this problem, or an emphasis on performance-based compensation that takes long-run performance into account would be more useful. In addition, too much control was held by too few. For instance, the internal auditor was informed by the external auditor that he only answered to Sullivan. This concentration of power enabled…

Business Ethics
ecent high profile bankruptcies in the U.S. corporate sector such as the ones filed by Enron, WorldCom, and Global Crossing in 2001 have highlighted the importance of financial ethics in business since lack of ethical practices were identified as the main cause of their failures. The business scandals underlined the importance of stricter regulation of the corporate sector and forced the U.S. legislature to pass the Sarbanes-Oxley Act of 2002 that contains a number of important provisions relating to business ethics. This paper about business ethics focuses on the impact of financial ethics in business.

Greed and an over-riding focus on increasing the profits and "share-holder value" usually leads managers and business leaders to disregard financial ethics in business. Although the impact of such "over sight" may be beneficial in the short run, it is invariably disastrous in the long run -- both at the individual as well as the…

External Environment – Retail Circuit City failed to adapt to changes in the external environment. First, as Best Buy grew, competition in the industry increased significantly. During the strongest periods of Circuit City’s growth, the company had the largest market share in the industry, but as it lost share it entered into a duopoly competition with Best Buy. This placed downward pressure on prices, precisely at a time when it became clear that Circuit City was less popular with consumers overall, and as it was facing some financial pressure from a decision to overhaul its stores.
The other thing that the company struggled to identify was that it was struggling through a boomtime in the mid-90s. Normally, a retailer should be doing well during an economic boom, but they were not. Management should at that point have realized that they were in trouble, and started making strategic moves to defend the company…

Madoff Investment Securities LLC (BLMIS) committed one of the greatest financial frauds in U.S. history. Investigations revealed that Mr. Madoff operated an elaborate "Ponzi Scheme" that started operating in 1980s.Even though Madoff was initially supposed to invest all of his clients' money in the securities markets, he never did so. Instead, he deposited the whole amount in a certain bank account that he held with the Chase Manhattan Bank. He therefore fulfilled his client's redemption requests using his own money. The fraud value was estimated at $50 billion and became a matter of public knowledge only after Madoff confessed to the crime. It can be regarded as the biggest financial fraud in U.S.'s history and it affected a large number of investors.The financial industry blamed the investors as well as regulators for neglecting the various warning signals that enabled Maddoff to continue with the fraud for several decades.
The Board…

Business Studies
What Caused Polaroid's Bankruptcy in 2001?

In 2001 Polaroid filed for bankruptcy. The circumstances surrounding the bankruptcy indicate several potential reasons, including poor management decision making and escalating commitment. The financial management of the firm appears to have been questionable in the year before the filing; a special bonus of $1.4 million was paid to the CEO Gary DiCamillo, and other board members received payments f between $63,000 and $272,000 (TParadiso, 2003). The payments were not illegal, but it is notable that the $1.4 million bonus for DiCamillo would not have been received if 6 months prior the auditor KPMG LLP had not been persuaded to refrain from issuing a going concern warning on the annual accounts (TParadiso, 2003). These actions may all appear questionable, especially the action of DiCamillio calling KMPG's CEO in order to ensure the going concern warring was not issued, but whatever the view, these do…

Dierct Air - Management & Marketing Mistakes
The following case study employs the array of industry metrics discussed above to determine major factors that contributed to Direct Airways filing for Chapter 11 bankruptcy during the time period from 2007-212. This time period was chosen because SEC filings at that time available, providing valuable insight into the stark differences between the two airlines. Direct Airways was a major U.S. carrier that was founded in 2001 and operated for 7 years until it fell into bankruptcy in 2001. This terminated an unrestrained years for Direct Airways, which filed for Chapter 11 bankruptcy last year of 2012 (Jayanti).

I understood that already the subject of a federal investigation by transportation regulators, the outdated charter service Direct Air long ago would soon may be facing a far-reaching investigation of its finances by the bankruptcy trustee (Bomkamp). The lawyer governing Direct Air's bankruptcy went ahead and asked…

Rock Group
HorribleScreech, this week's hottest band on the planet, recently came to its senses and hired me as its new attorney. The first task after cashing a retainer check for mucho dinero is to free the band from an oppressive "new kid" recording contract between HorribleScreech and Bloodsucker Enterprises. There is nothing on the face of the contract that would free HorribleScreech. At this point, all other legal/business options can be considered.

The contract and all the circumstances around it should be considered first. For example, even though the contract is oppressive and even though some lawsuits take years, there might be some factor that would allow the band out of the contract more easily and quickly. Contract laws differ from state-to-state, so let us assume for this paper that the contract was signed in Los Angeles, California. In California, a contract can be unenforceable or can be rescinded for…

Yet, today, they sell only about 47% and this market share loss has accelerated over the past decade (Sullivan, 2008). The major issue, according to Sullivan, is the inability of the ig Three to effectively compete with their more efficient and market savvy Japanese rivals, even on their home turf. Opponents of the auto industry bailout feel that placing more money into a failed business strategy makes no sense and that everyone is better off if the free market, not the federal government, choose the winners and the losers in the economy (Moran, 2008). The end result of the auto bailout could well result in a return to protectionism which could unfairly impact other American industries' ability to compete in a global market. A policy analyst at the German-Marshall Fund voices a common concern that a bailout of the auto industry has the potential "to be the torch that…

Independent dealers must sign a contract that sets forth the manner in which they will operate their rental centers. Often a small business owner will supplement their income be adding U-Hauls to their market mix. Independent contractors earn a commission on their sales.
Each division of AMERCO has it own president. All of them must report to a Board of Directors. The Chairman of the Board and overall President is Edward Shoen, descendent of the original founders of the company. Many members of the Shoen family still control much of the company (Google Finance). Little information is available about the company, aside from their financial statements. Although they have a Board of Directors, the company continues to operate as a family-style operation, with the family members occupying many positions in upper management. The company structure is simple and little is available beyond basic information.

Purchasing Contract Analysis and the UCC

The Uniform…

Financial Analysis of Lehman rother
Lehman rothers

The history has been full of financial collapses and financial scandals and one of the biggest financial collapses that a company has ever seen was that of Lehman brother. The collapse of a firm as huge as Lehman rother and a firm which has such great experience of over a hundred years lead the world into a shock. It created doubts in the minds of people regarding the condition of other financial institutions. The history of Lehman rother is rich which is further discussed.

The history of Lehman rother dates back to 1844, when a boy named Henry who was a 23-year-old son of a cattle merchant who immigrated to the United States from Germany and he settled in Alabama State of the United States where he opened dry goods store. In 1847, when Henry Lehman's elder brother arrived to Alabama, the firm expanded to "H.…

Debt DischargeAccording to Zywicki (2000) rampant personal bankruptcy frays the social moral order and undermines reciprocity. Throughout history a debtor who failed to repay a debt was generally regarded as a fraud or a thief; debtors prisons existed for that reason; it was unthinkable that a loan should not be repaid. However, today, personal bankruptcy laws like the federal Bankruptcy Act protect borrowers by providing immunity from creditors. The borrower who defaults will see his credit rating decline to the point where it is nearly impossible for him to get another loan, but he is not held responsible for paying back his creditors. There is a social cost to this, as Zywicki (2000) points out: bankruptcy laws that provide defaulters with immunity undermine the market economy, democracy, and healthy institutions that rely on reciprocity. In short, personal bankruptcy and immunity from prosecution erodes social trust. The ability of a person…

Joe's Sports, a 50-year-old sporting-goods retailer with stores in Washington, Oregon and Idaho, who filed for bankruptcy protection recently. The company began when "Edward Orkney, a World War II veteran, began selling Army surplus sleeping bags from the back of a station wagon in Portland" (Martinez, 2009). It grew to a chain of 30 stores with over 1,600 employees, and was considered successful until the economic downturn that began in 2008.
The company claims up to $500 million in debt, and there are several of its creditors who are uninsured and facing steep losses, such as Columbia Sportswear, another Washington company, who is owed about $888,300. They owe about $12.8 in total to all their creditors. The company did secure some funding from Wells Fargo etail Finance so it can continue to operate and pay its employees as it attempts to reorganize and again become profitable. The President and CEO…

Particulars of Enron's Bankruptcy
There were a number of specific actions that led to Enron's bankruptcy. The majority of these pertain to a lack of accountability on the part of numerous people in key positions at this firm. The individual accountants at Arthur Andersen, the now defunct accounting firm that worked for this company, allowed Enron to utilize dubious accounting practices without trying to curtail them. Upper level management was guilty of allowing such accounting practices to take place, and of being too concerned with acquisition and spending to ensure the company was operating in accordance with the standards provided by the Securities Exchange Commission. Several fraudulent activities also contributed to Enron's bankruptcy. These include the insider trading that took place, the misrepresentation of the company as financially viable when it was on the verge of bankruptcy, and many others.

One of the primary accounting and auditing practices that eventually contributed to…

Therefore, bankruptcy becomes the other option to deal with the liability to Crossroads. The issue of subordination should be dealt with before bankruptcy proceedings are undertaken, to best protect the Thompsons. At that point, the courts can sort out the extent to which ragonfly will honor its liability to Crossroads. The downside of bankruptcy is that the Thompsons are major creditors to ragonfly as well, and the bankruptcy could jeopardize their net worth if they are unable to convince Janet's parents to write off the Thompson's obligations to them. Bankruptcy, however, is lever that can be used against Crossroads, since the mall cannot unilaterally impose bankruptcy on ragonfly and would ideally like to receive the monies owed.

Turning ragonfly around is possible, if they are able to maintain solvency while getting out of the Crossroads lease. The Thompsons had gambled that Crossroads would attract ragonfly's target market and that does not…

Though Toys ‘R’ Us has recently announced bankruptcy and closures of its stores, a business ethics situation has arisen related to the compensation packages given by the company to its executives. As Held (2017) points out, “a bankruptcy judge has granted struggling retailer Toys R Us permission to pay millions of dollars in bonuses to executives after the company argued it was necessary to motivate its top brass during the critical holiday shopping season.” The problem, as Judy Robbins of the Justice Department’s U.S. Trustee Program has shown, is one of accountability. Ethically speaking, the bankruptcy court’s allowance of this goes against all sense of ethics and how a corporation should be expected to govern itself and be accountable to shareholders. But it also goes against the Bankruptcy Code as Robbins notes: “It defies logic and wisdom, not to mention the Bankruptcy Code, that a bankrupt company would now propose…

Chain Restaurant
One chain restaurant that went bankrupt recently was Bennigan's, which filed for Chapter 7 bankruptcy in 2008 (Tozzi, 2008). All of the company-owned stores closed, and many of the franchise-owned stores also closed. Of those franchise-owned stores that survived, many suffered as a result of the negative publicity and loss of key advertising and purchasing support. hile 138 locations avoided bankruptcy initially in 2008, only 35 of those remained by 2010 (Stockdale, 2010). This paper will examine the external environment in the casual dining industry at the time of the Bennigan's bankruptcy, and the extent to which the company's strategy contributed to its downfall.

In 2008, the U.S. economy was headed for recession, and this has a significant negative impact on the casual dining industry. The industry had 81,000 restaurant locations, making for a highly-fragmented marketplace that was in all likelihood well over capacity. As a result, some failures were…

y extending the copyright term it virtually ensures that the person's children and possibly grandchildren will also not have to see that take place.
Other than peace of mind for future generations of relatives, however, there is really little to gain by an extension of the copyright period. The original creator of the work is gone, so he or she will not be complaining, and the original copyright act went fifty years beyond that person's death, so an extra twenty years does not gain much. What it does do is stop people with ideas that are creative and unique to some degree but would also play on or work with an older idea from getting those ideas to market and into the hands of readers and consumers.

This actually hurts the public as a whole, and people do not even realize it. It can also hurt creative people like writers and…

This is part of a month-long survey to determine whether current weight estimates are accurate. Anyone refusing to give his or her weight could be barred from the flight. Investigators are looking at excess weight and elevator malfunction as possible contributing causes of the January 8th crash of a 19 seat eech 1900 turboprop.. Maximum take-off weight for the eech that crashed was just over 17,000 pounds and the plane was within 100 pounds of that figure."
Individuals flying should be warned that anything stashed underneath the clothes will be seen, even the individuals private body parts as evidence in the following report from September 10, 2004:

new X-ray machine at London's Heathrow has been attacked by civil liberties groups as a "voyeur's charter." The machine uses low-level radiation to see through clothing, producing an anatomically detailed black and white image of the body underneath. The machine is capable of detecting…

e. An amount that is about 1% of GDP) to ensure that the current PAYGO system is solvent for the next 75 years. Thus, 10 trillion dollars problem is not as large and scary if we start acting today to fix the current system).
It is totally manageable."

ut the official plan is somewhat different. ush's administration is trying to introduce private account systems where a fraction of payroll tax will be transferred to private accounts and managed by the future retirees themselves, thus, giving them chance to invest this money into stocks, which have proven to give on average higher rates of return than the Treasury ills which generate rather moderate income.

The opponents of this idea state that this is just a shell-game, where no capital is accumulated and investments are not increased. The overall national capital is not increased, but this plan will cause enormous transactions costs which are estimated…

Conclusion
If AIG would not have been helped by the Federal eserve, it is more
than obvious that the financial group would have declared bankruptcy.
Although the bailout reached an enormous sum, the action was justified.
Given the current market conditions, an eventual collapse of AIG would
contribute even more to the fragility of the financial market. Also, it
would have led to a reduction of public wealth, and it would have reduced
economic performance.
The opinion of U.S. taxpayers is that the AIG bailout was not
justified. For them, it did not seem fair that they should pay for the
mistakes made by financial corporations' CEOs and by the defective policies
and strategies practiced by financial groups.
There are two sides to this issue, one opposing the other. U.S.
citizens have strongly declared themselves against the bailout. Their
pressure determined the country's officials to reject financial saving
plans initially.
However, the efforts of these taxpayers had to be sacrificed, and AIG
has to be helped to…

Fiat / Chrysler -- Leadership - Teambuilding
The Chrysler merger with Fiat was met with skepticism and doubts when it was first proposed. Chrysler had just recently emerged from near bankruptcy -- saved by a U.S. government bailout -- and Fiat is a strong internationally respected corporation building cars, earth-moving machines, and more. The merging of Chrysler and Fiat was seen as having a greater opportunity for success than did the merger between Chrysler and Daimler-Benz, but still there were doubters in the industry. However, as of May, 2012, the blending together of the two companies (Fiat and Chrysler) has produced a profitable situation. This paper examines the cultures -- and leadership -- shown within the two companies, a strong combination that has allowed success to be achieved. The paper also critiques the leadership styles in the dynamics of this merger, and delves into the concept of teambuilding when two companies…

Continental Go Forward Strategy
The overarching objective of the Go Forward Strategy was to continually accelerate the gains made in customer relationship management (CM), customer service, operations and the maintenance, repair and overhaul of their jets. What Continental was after was the ability to unify their entire operation into a highly integrated, coordinated customer-based platform that could be used for streamlining every aspect of their operations to exceed customer expectations and deliver exceptional value (Watson, Wixom, Hoffer, Anderson-Lehman, eynolds, 2006). The Go Forward strategy further galvanized Continental unto a very focused strategy for ensuring their Enterprise Data Warehouse (EDW) turned into a Powerful catalyst for customer-driven change (Watson, Wixom, Hoffer, Anderson-Lehman, eynolds, 2006).

The $30M investment in the Go Forward Strategy was one of the most effective investments in technology any airline has ever made in technology, with Continental netting a gain of $500M in increased revenue and cost savings. In…

The racehorse industry has been faced with accusations of promoting the breeding of fragile animals that are unable to withstand the rigors of training, because of a lust for promoting speedy animals at all costs. And the recent publicity of the slaughter of retired racehorses who have outlived their usefulness has further damaged the reputation of the sport. Unlike other forms of betting, horseracing must try to preserve its family-friendly image to some extent, given that many parents take their children to the track. Poor sportsmanship and a lack of sensitivity to the suffering of animals will turn the next generation of fans away.
Conclusion

Churchill Downs must honor the legacy of its treasured past, and promote prominent ethical spokespersons for the sport, like the multiple Kentucky Derby winner jockey Calvin Borel. More stringent standards must be imposed industry-wide regarding the treatment of both horses and jockeys, but until then, Churchill…

4. I did not obtain my current mortgage under any materially false pretenses.

As part of the Hope for Homeowners program, I would be able to attain a new affordable mortgage based on a current appraisal value. I would retain 10% equity in the property, and would be sharing the equity and future appreciation with the Federal government, which would prohibit me from taking out any additional loans against the property except for direct repairs and/or maintenance. There are also up front insurance premiums for this type of loan, which I am aware of.

If you would please consider one of these two options, I believe we can come up with a mutually satisfying solution to help avoid foreclosure on my home. I am writing this hardship letter to plead with your company to review my loan information, take into account my current financial situation, my excellent payment history prior to the…

A major weakness that can be mitigated for P&G is that of copycat and "me too" products that erode the prestige of the brand. When margins are high competitors tend to enter the market. The industry that P&G operates in is fairly easy to enter. There are many substitutes for Tide as there are many substitutes for Coke. P&G must be very careful to maintain the prestige and quality of the brand so that competitors can not erode its influence on consumers.

Compare the strengths and weaknesses of P&G's resources and capabilities to that of Eastman Kodak (Case 7). These companies are in very different industries. How does this affect strategic analysis of resources and capabilities?

The first major strength of P&G relative to Kodak is its margins and cost structure. P&G has the benefit of increasing earnings without having a corresponding increase in capital expenditures. Eastman Kodak however, as the case…

nd we must take into consideration what would happen if, somewhere down the line, we encountered the very real possibility of changed financial circumstances.
The financial knots we're tying ourselves into now, as we scramble to purchase homes and wind up owning less of them, can have serious long-term ramifications. Because today's overall tighter finances often necessitate putting off major purchases, many adults don't buy their first home until they're well into their thirties or even forties.

s a result, those thirty-year mortgage payments follow us right into retirement, hanging around even as rising health care and tuition expenses for college-aged children begin to spike. s a result, we discover too late that the asset we gambled everything to acquire because it was going to see us through retirement is instead pushing that retirement further and further away. lready, an increasing number of seniors are borrowing against their homes, accumulating more…

e. telling someone that you think he is still discontent), paraphrasing the emotion that the other expresses, and encouraging emotional perspective taking (with questions like "how would you feel about this in the future?" Or attempting to convey the emotion of the other party). In short, emphasis on emotion should be placed forefront in the mediation session and the underlying emotions should be uncovered and dealt with in order that one can then proceed to a conflict-free resolution.
There are, in short, two ways -- as Schnurman (2011) observes -- to handling workplace conflicts. Firstly, one can seek to minimize them by generating a healthy, communicative work environment. Secondly, one can skillfully resolve and defuse the issues once they arise. Arguments are a part of every workplace. How one deal with them determines the results -- and the results can be positive if dealt with in a constructive manner. Focusing on…

For this reason, they have stepped out to pursue alternatives, especially foreign cars. On the contrary, as consumers become price oriented, they have minimal purchasing power because they are not buyers of large volume automobiles (Porter, 1985).
3.3 Threat of New Entrants

It is extremely difficult for new entrants penetrate the auto industry because of the existing high level of brand loyalty. Nevertheless, the few popular overseas firms and entered the American auto industry easily. For example, Honda Motors entered Ohio by opening a new office. This marked the beginning of a major stiff competition in the industry. Foreign entrants have expanded leading to decreased markets for American auto companies (ubenstein, 2011).

3.4 Bargaining Power of Buyers

In the current marketplace, consumers have been given various options, models, and brands to make their selection. However, various factors affect the buying decisions of consumers. They include price, appearance, and effect on the environment. Customers…

MF Global
Discuss the key difference between conducting a financial audit and a fraud audit, and the related level of responsibility of the auditing firm.

Financial audits are typically carried out by certified public accountants or outside agencies or firms that work directly on behalf of individual companies. At times financial audits may be initiated by government entities. The audit itself is more of a "double-check" of financial reports and practices (Weinberg, 2003). Financial audits are deemed complete upon verification that numbers are accurate. Completed financial audits may prove or disprove information, but discrepancies will typically not result in the same serious consequences as those uncovered during a fraud investigation or audit.

Fraud auditing usually comes at the demand of the U.S. court system - usually the work is carried out by the government or privately-held third parties. Fraud audits look for dishonesty and hidden figures. They probe deeper than the average financial…

Corporation Transactions and Misrepresentation of Financial eports
Business law also called commercial law is a branch of civil law that governs business as well as, commercial transactions, and deals with both the private and public law. The branch created to ensure that, they are no exploitation and manipulation of people as well as rules and regulation in order to benefit some members of a business. This means that should one break or manipulate the rules and regulation in his favor. The or she must face the court in accordance with the law. With legal rights of all investors considered as an important element of the business law, we examine the board changes within the filling of the shareholder derivative lawsuits and might not be frivolous. Also, lack of highly competent employees within a business can lead to tremendous losses and to some extent closure of the business in accordance with law,…

Terrorist Attacks on New York City
Consumer ehavior and Risk

Terrorism and Consumerism in the Melting Pot

How has September 11 Impacted Americans

Economic Impact of terrorism

Outlook for the New York Economy

Examination of the Effects on usiness

Regaining Consumer Confidence

Sampling Procedures

Survey Construction

Survey results

Recommendations for Further Studies

Survey of Consumer Patterns After The September 11 attacks on the World Trade Towers

Survey Results presented Graphically

Store Owner Interviews

The Impact of the Terrorist Attacks on New York City: One Year Later Chapter 1

The attacks on the World Trade Towers on September 11, 2001 threatened the American People's sense of security in a way that had not been felt since the attack on Pearl Harbor. To say that the attacks changed the lives of many people would be an understatement. The attacks literally brought the country to a halt for nearly three days. It can be expected that these events would have an immediate and drastic effect on people's behaviors…