Aside from the direct costs of bankruptcy, a firm may also incur other indirect costs such a?

Question

Quizplus · Accepted Answer

When a firm declares bankruptcy, it may lead to loss of customers and suppliers. Customers may lose confidence in the firm and switch to competitors, and suppliers may become hesitant to extend credit to the firm. This can result in a long-term loss of business and revenue for the company. Loss of interest and dividend receipts may also occur, but they are not as significant as the loss of customers and suppliers. An increase in raw materials costs is not necessarily a direct result of bankruptcy.

Aside from the Direct Costs of Bankruptcy, a Firm May