Topic Developement 3 - Essay Example

Therefore, this study will attempt to answer the following questions: i. What is the legal definition of bankruptcy and what are the causes and consequences of bankruptcy? ii. What are the various forms of bankruptcy and what are the legal procedures applicable in declaring a company bankrupt? iii. What is the chronological evolution of bankruptcy in the USA? iv. What are the tendencies and signs pointing to bankruptcy of a company and what are the technical financial details of bankruptcy? v.

How can bankruptcy be mitigated and what is the role played by other disciplines such as psychology and management in mitigating the effects of bankruptcy? Through answering these questions, it will be possible to thoroughly cover the concept of bankruptcy, right from its evolution to the current state, highlighting the tendencies and the signs indicating that a company is headed for bankruptcy, as well as addressing how the state of bankruptcy can be mitigated. Additionally, the role of certain disciplines in addressing bankruptcy will be evaluated, to create an understanding of the interrelationships between various disciplines.

This study will take the form of qualitative research design, where the historical background of bankruptcy will be analyzed, with a view to understanding the chronological changes in bankruptcy laws, up to the current laws applicable. The study will also take the form of a case study, where it will analyze the historical bankruptcy of certain companies in the USA. The focus of this analysis will be an inquiry into the causes of the bankruptcy, what laws and legal procedures were applied to declare those companies bankrupt and what were the consequences of the declaration of bankruptcy to the company and to tits stakeholders.

Further, the study will engage in probing the attempts made by various companies to revive themselves from the state of bankruptcy, and how successful their strategies were, to revive the companies. The study will also engage in comparing bankruptcy for different companies, evaluating how such companies addressed the issue of bankruptcy and determining which companies were successful and which ones were not. In so doing, it will be possible to determine the most appropriate strategies that are applicable in addressing the issue of bankruptcy for companies.

Additionally, the role of various disciplines such as psychology and management in helping the companies address their state of bankruptcy will be analyzed, with a focus to understanding the relationship between the concept of business, management and psychology. This will be followed by recommendations on how companies can address bankruptcy, based on the success factors identifiable under different company case studies. The effect of bankruptcy in the economy is yet another focus of this study.

Bankruptcy offers an individual or an organization the opportunity to start afresh, through forgiving the debts that cannot be paid and strategizing on the way forward (Ekvall & Smiley, 2007). Additionally, the declaration of bankruptcy gives the creditors an opportunity to measure the extent of their debt repayment, based on the assets of the organization that are available. This way, the declaration of bankruptcy is beneficial to the economy, since it serves to untie and set free the resources held by the redundant business, which are then re-invested into the economy with much vigor (Ekvall & Smiley,