A legal process whereby the business owner seeks protection from creditors by using the federal government and an assigned trustee to either liquidate or reorganize the business. There are two forms of business bankruptcy, Chapter 7 (Liquidation) and Chapter 11 (Reorganization).
One of the liquidity ratios used in business is the cash ratio. It is a much more effective tool for small business than the traditional current or quick ratio. Although the cash ratio is more difficult to […]