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Implicit Bankruptcy Costs |
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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. 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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