Firms deal with financial distress by:

Question

Quizplus · Accepted Answer

Firms in financial distress may need to implement multiple strategies to manage their situation effectively. Selling major assets can provide a source of funding to help the firm meet its obligations, while merging with another firm may provide additional resources and cost savings. Issuing new securities can help raise capital, and exchanging debt for equity may help to reduce debt levels and improve the firm's financial position. Therefore, all of the above options may be necessary to address financial distress.

Firms Deal with Financial Distress By