Economic distress represents a significant decline in the value of ________,whether or not it experiences financial distress due to leverage.

Question

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Economic distress is characterized by a significant decline in the value of a firm's assets. This can occur regardless of whether the firm has taken on significant debt or not. Economic distress can lead to financial distress if the decline in asset values makes it difficult for the firm to meet its financial obligations, such as loan payments or payroll.

Economic Distress Represents a Significant Decline in the Value of ________,Whether