Indirect insolvency costs include changes in customer and supplier behaviour that negatively affect the company.

Question

Quizplus · Accepted Answer

Indirect insolvency costs refer to the negative impacts on a company caused by changes in customer and supplier behavior, such as customers refusing to do business with the company or suppliers demanding upfront payment. These costs are considered indirect because they are not directly related to the financial obligations of the company, but rather the consequences of their insolvency on their business relationships.

Indirect Insolvency Costs Include Changes in Customer and Supplier Behaviour