Insolvency is the time when an individual, corporation, or other organization cannot meet its financial obligations for paying debts as they are expected. Insolvency can occur when certain things happen, some of which may include: poor cash management, increase in costs, or decrease in cash flow. A finding of insolvency is imperative, as particular rights are empowered for the creditor to exercise against the insolvent individual or organization. For example, exceptional debts may be paid off by dissolving assets of the insolvent party. Prior to proceedings, it is common for the insolvent entity to meet with the creditor in order to attempt to arrange a substitutable payment method.
Liquidation is a procedure under which a court-appointed administrator is responsible to shut down the bankrupt company and dispose its assets. White (1982) finds the liquidation inefficient, due to several drawbacks it entails. For example, creditor claims have no flexibility in their fulfillment. If a creditor claim cannot be satisfied in full, it will not be satisfied at all. Moreover, managers of a failing company may try to delay the liquidation falsely to save their positions.
As previously mentioned, this isn’t only due to more violence, but it is also a result of tougher sentencing. The more unequal the society is, the more likely the death penalty is to be administrated. This increase in safety is just one of many benefits of reducing income inequality. Government intervention is the most effective and efficient way to tackle income inequality. In conclusion, there are both advantages and disadvantages to economic inequality, but when many of the individuals in the community strive for a better standard of living, the goal of the community becomes to achieve a better standard of living.
Two Key Principles of Economics Learning the five key principles of economics provides an understanding of economic analysis. There are many events both in the world and one’s personal life that can benefit from having the ability to perform economic analysis for one’s self to identify good and poor financial decisions. It also allows the consumer to make knowledgeable choices about purchasing power and the value of a dollar. The two principles that this paper will focus on is the principle of voluntary exchange and the real-nominal principle. These two principles are useful in everyday life to assess the impact of the exchange of goods and services.
5. 2) Page B13, and #1-4 1.
The laws related to recovery of debts to banks, financial institutions, companies and winding up proceedings, sick companies, public and other statutory financial corporations. To further add to this complicated array of laws, was the hierarchy in debt recovery. The government being on top of the list and the unsecured creditors were at the bottom. The complex varying laws, involvement of multiple variables in debt recovery, various attempts by the debtor to stall recovery and creative lawyering resulted in never ending proceedings and ultimately the defeat of the purpose of recovering owed
These are the civil courts, penal courts and administrative courts. The Court of Cassation is the supreme court within the civil and the penal justice system. The supreme court in administrative justice is The Council of State (Legal Global). In the appendix, a picture of the juridical structure can be found. Tax: There are 3 different types of tax: income tax, corporate tax and withholding tax.