A firm is said to be bankrupt once it defaults on a bond payment.

Name: A firm is said to be bankrupt once it defaults on a bond payment.
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A firm's financial state is determined through several factors, including cash flow, debt-to-equity ratio, and profitability. Bankruptcy occurs when a company can no longer meet its financial obligations and becomes insolvent. Defaulting on a bond payment is one indication of financial distress, but it may not necessarily lead to bankruptcy.

A Firm Is Said to Be Bankrupt Once It Defaults