It is an unfortunate fact that many companies will find themselves facing financial or operational challenges at some point in their life cycle. Often times this is due to situations that are out of the control of the companys directors and management team.
Things such as a changing marketplace, shifting consumer expectations, the loss of a major supplier, or increased costs leading to wafter thin profit margins are all major contributors to a company becoming financially compromised.
In some instances, these problems have the potential to cause the company to fall into a position of insolvency if remedial action is not taken.
Determining company insolvency
There are two tests which can be used to determine whether a company is insolven…
Read the full article at: https://thebusinessmagazine.co.uk/corporate-finance/shaun-barton-noticing-early-warning-signs-to-prevent-business-insolvency/