Bankruptcy Essay Example | Topics and Well Written Essays - 1000 words

Bankruptcy - Essay Example If Quick ratio, Current ratio and Times Interest Earned ratio are negative then this is an indication that the company faces liquidity problems and the creditors are not satisfied with the company's financial performance and also the creditors will not issue more debt in future (Tenk). If the company's cash outflows are higher than the cash inflows then this is an alarming situation for the company. It gives also the indication that there is any mismanagement exists in the company's operating, investing and financing activities (Tenk). 1. Implication on Current Asset: Current assets are reviewed critically after the announcement of bankruptcy. All the necessary payments to the creditors are made through sales of those assets. (Main Effects of Petitioning for Bankruptcy). 2. Implication on Future Assets: After bankruptcy, the company loses its money with respect to the payments made to the creditors and the money left is insufficient in order to acquire back the assets, to start running the business again in future. Moreover, time value of money and the factor of inflation also make a significant impression on the future assets. (Main Effects of Petitioning for Bankruptcy). 3. ... All the necessary payments to the creditors are made through sales of those assets. (Main Effects of Petitioning for Bankruptcy). 2. Implication on Future Assets: After bankruptcy, the company loses its money with respect to the payments made to the creditors and the money left is insufficient in order to acquire back the assets, to start running the business again in future. Moreover, time value of money and the factor of inflation also make a significant impression on the future assets. (Main Effects of Petitioning for Bankruptcy). 3. Implication on Future Credit: The element of bankruptcy also brings about a curse for the company as it then faces difficulty in acquiring additional debt for its future business operations. Because of bankruptcy the company's goodwill and credit ratings are also negatively impacted (Main Effects of Petitioning for Bankruptcy). PROS AND CONS OF BANKRUPTCY The advantages of bankruptcy are stated below: After filing the bankruptcy, the creditors are legally bound to stop all activities of debt collection. Filing for Bankruptcy give sthe company a fresh financial start In most of the bankruptcy cases certain categories of propertys like home, life insurance and car, are exempted in order to repayment of debt to creditor. The disadvantages of bankruptcy are stated below: Declaration of bankruptcy distorts the image and goodwill of the company. In near future the company faces difficulty financing their expenses by acquiring more debt. Due to the bankruptcy, the company's stock prices fall and there is an implication on ceasing the future business operations. Due to the effect to bankruptcy, the company loses control over its property (Bankruptcy Pros and Cons). In order to sue

Length paragraphs project Essay Example | Topics and Well Written Essays - 1500 words

Length paragraphs project - Essay Example On the 50th anniversary of the Universal Declaration of Human Rights (1998), the UN also celebrated the tenth anniversary of the Vienna Convention on Drug Trafficking, and reaffirmed the resolve to intensify international efforts to eradicate this evil. This paper attempts to briefly examine the impact of laws and policies in this ongoing war, and to suggest possible changes and measures in order to accelerate the pace of international efforts in curbing the drugs menace. The war against drugs has assumed global dimensions, and almost resembles the crusades. The problem has apparently assumed alarming proportions primarily due to years of inaction by several governments, apart from the lack of clear policies, laws, and implementing machinery relating to drugs. Increasing drug use as such is not seen as the major culprit in compounding the crisis. It is estimated that in the U.S. alone, illegal drug trafficking accounts for over 8% of international trade revenues, totaling US$400 billion annually (Riley, 2001). Among other things, the evils propagated by the mushrooming drug industry include the following: â€Å"The need for an integrated approach to drug control is now well accepted, and was endorsed by the international community with the establishment in 1990 of the UN’s Global Program of Action† (Knaack, 1995, p. 349). This Program set out to implement â€Å"balanced strategies that are comprehensive and multidisciplinary in scope† and targeted at â€Å"combating all aspects of drug abuse and illicit trafficking† (1995), apart from tackling certain other related problems, such as: Unless tougher, more consistent and better-organized international action can be mounted against trafficking, we will continue to pour tens of thousands of billions of dollars into the ‘war against drugs’ without rooting out the evil. The potential profits are so enormous that major traffickers will always have an interest in stimulating demand and