Financial distress may be more expensive if the:

Question

Quizplus · Accepted Answer

Limited information about the permanency of the shortfall and having many different types of creditors and other investors can make financial distress more expensive. This is because uncertainty and complexity can increase the costs of negotiating and reaching agreements with stakeholders, as well as the potential losses that each stakeholder may incur. Additionally, having never entered into bankruptcy before may not necessarily make financial distress less expensive, as each situation is unique and there may still be high costs associated with the process.

Financial Distress May Be More Expensive If The