Costs associated with the requirement that management divert its attention away from strategically managing a corporation in favor of spending time with financial attorneys could be best described as

Question

Quizplus · Accepted Answer

Indirect bankruptcy costs refer to costs that are not directly related to the bankruptcy filing, such as the costs of diverting management's attention away from strategic management to deal with legal and financial issues. Therefore, the best choice is B, indirect bankruptcy costs.

Costs Associated with the Requirement That Management Divert Its Attention