________ refers to the difficulties experienced by firms as they attempt to meet financial commitments to their creditors.
A)Financial distress
B)Capital structure
C)Capital budgeting
D)Working capital management

Question

Quizplus · Accepted Answer

Financial distress refers to the challenges and strain that firms experience when they are unable to meet their financial obligations to their creditors such as banks or bondholders. This usually occurs when a firm's earnings or cash flows are insufficient to cover their outstanding debts, leading to default or bankruptcy.

________ Refers to the Difficulties Experienced by Firms as They