Legal bankruptcy proceedings focus on the decision of whether the firm's value as a going concern is greater than its ____ value.

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Legal bankruptcy proceedings focus on determining whether a firm's value as a going concern is greater than its liquidation value, which is the amount of money that could be obtained by selling the firm's assets in a piecemeal fashion. In other words, if the liquidation value is greater than the value of the firm as a going concern, it may be more advantageous for the firm's creditors to sell off its assets rather than try to revive the firm. Therefore, the focus is on the liquidation value, not the market value, equity value, or historical value.

Legal Bankruptcy Proceedings Focus on the Decision of Whether the Firm's