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Bankruptcy Risk |
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Bankruptcy risk The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy Risk The risk that an individual or especially a company may be unable to service its debts. Bankruptcy risk is greater when the individual or firm has little or no cash flow, or when it manages its assets poorly. Banks assess bankruptcy risk when considering whether to make a loan. It is also called insolvency risk. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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