Business Failure
From Open Risk Manual
Revision as of 16:11, 5 March 2020 by Wiki admin (talk | contribs) (Created page with "== Definition == Business Failure is an umbrella term that captures a range of different circumstances in which a Company (Corporation) ceases to be an independently t...")
Definition
Business Failure is an umbrella term that captures a range of different circumstances in which a Company (Corporation) ceases to be an independently trading Legal Entity. Specific scenarios may include
- Bankruptcy
- A merger, takeover or other such Corporate Event that subsumes an entity into another
- A cessation of trading due to a variety of factors (See Business Risk) that is not also a Credit Event
