What are the main ways a company could avoid bankruptcy?
Jan Meriss Alfonso Assistant at Ascent Law LLC How a Company Could Avoid Bankruptcy Keeping a close eye on your business is vital to its long-term survival. You need to review your finances regularly and make tough decisions. It is also important to take time off and build relationships with trusted advisers. A good business advisor will help you make sound business decisions. Budgeting One of the primary ways a company could avoid bankruptcy is through proper budgeting. While making a budget is not difficult, sticking to it requires discipline and hard work. While filing for bankruptcy is often an easy solution, it is only a short-term fix. A proper budgeting process would help a company avoid bankruptcy by keeping costs under control, monitoring the profit margin, and monitoring collections. It would also help a company plan for future growth. For example, it could be beneficial to plan for capital expenditures, allocate bonuses, and fund retirement plans. A business could also...