Which of the following is the most extreme type of financial distress for a business?

Question

Quizplus · Accepted Answer

Business failure is the most extreme type of financial distress as it signifies that the business has completely stopped operating and cannot continue. Economic failure refers to a situation where the business is unable to generate enough revenue to meet its financial obligations, but it can still continue to operate. Technical insolvency refers to a situation where a business's liabilities exceed its assets, but it can still pay its debts by selling its assets. Business extension is not a type of financial distress.

Which of the Following Is the Most Extreme Type of Financial