The advantages of advance notice of a closing

Question

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Advance notice of a closing of a firm allows affected employees and communities to prepare for the economic impact of the closure, and to begin to search for alternative employment or economic opportunities. The advantages of advance notice for these stakeholders often far exceed any disadvantages. While a firm may also benefit from advance notice (such as having time to wrap up operations or negotiate contracts), the primary beneficiaries are often the employees and communities directly affected by the closure. Financial institutions may benefit from advance notice if they are able to better manage their portfolio of loans to the firm, but this benefit is not typically as significant as those to the affected employees and communities.

The Advantages of Advance Notice of a Closing