When a ﬁrm ﬁles for bankruptcy, the ﬁrm often must hire appraisers to determine the fair value of
the ﬁrm's assets. This is an example of a direct cost of bankruptcy.

Question

Quizplus · Accepted Answer

This statement is true. Appraisers are typically hired to determine the fair value of a firm's assets during the bankruptcy process, and this cost is considered a direct cost of bankruptcy.

When a ﬁRm ﬁLes for Bankruptcy, the ﬁRm Often Must