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Implicit Bankruptcy Costs
(redirected from Implicit Bankruptcy Cost)

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Implicit Bankruptcy Costs
Opportunity costs incurred prior to the bankruptcy process such as the loss of sales or financing.

Implicit Bankruptcy Costs
Costs of bankruptcy other than attorney's fees, payments to creditors, and other direct costs. Implicit bankruptcy costs include the revenue one could have made from concentrating the company's energy on sales rather than the bankruptcy, or the increased interest rates the company will have to pay on loans. Implicit bankruptcy costs are difficult to measure and are an example of opportunity cost.


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