If the going concern value is less than the selling or liquidation price, the firm should seek the protection of the bankruptcy court.

Question

Quizplus · Accepted Answer

If the going concern value is less than the selling or liquidation price, it may still be possible for the firm to negotiate with creditors, restructure or merge with another company to avoid bankruptcy. The decision to seek protection of the bankruptcy court should be based on a careful evaluation of all options and potential consequences.

If the Going Concern Value Is Less Than the Selling