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Warning signs that would indicate the possibility of an entrepreneur becoming bankrupt.
i. Delay to pay creditors on due time
ii. Change in credit policy, from credit to cash on delivery.
iii. Key personnel leave the company.
iv. Selling fixed assets to pay creditors
v. Customers are given large discounts, to enhance payments because of poor cash flow
vi. Contracts are accepted below standard amounts to generate cash.
vii. Materials to meet orders are lacking
viii. Payroll taxes are not paid. :
ix. Customers’' complaints regarding service and product quality increase.
x. Suppliers demand payment in cash.
marto answered the question on January 29, 2019 at 11:54
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