Financial Distress

The dinner bill came. You had no idea that bottle of bold California cab would cost $350. Financial distress ensues.

When companies are feeling stressed...like, they aren't making enough in basic profits from the business to pay the interest on their debts...or they are losing money, we (and they) call it “financial distress.”

How do companies get themselves into these financially stressful situations? Bad products. Bad management. Bad market timing. Bad luck.

See: Chapter 13. See: Bankruptcy.