knowledge-check

An increase in economic, business and financial challenges increases corporate stress

• True

• False

The example of the adverse effect on trading activities and support are …

• Credit rating downgrade

• Loss of contracts and market position

• Pressures on derivative position and contingent liabilities

• Qualified audit opinions

What are the example of business issues that may push a company into financial distress?

• Negative cash flows

• Equity and debt trading down

• Operational failures

• High leverage

Collateral top-up requirements is not an example of adverse effect on financial position and support

• True

• False

Below is the condition that will triggered challenges and stress to company performance, except …

• Financial market stability and economic growth

• Increase of legal and contractual issue

• Operational and supply chain disruption

• Working capital deficiency and liquidity pressures

What are the example of financial issues that may push company into financial distress?

• Working capital issue

• Fraud and litigation

• Significant upcoming maturities

• Margin compression

Debt restructurings are normally triggered by a combination of business and financial issues that lead to a deterioration in performance and an unsustainable position

• True

• False

Increase in economic, business and financial challenges decreases potential simultaneous adverse effects on company’s profitability, cash flows, leverage, liquidity and financial flexibility

• True

• False