Page 33 - Manac test 2 Cycle slides

BUSINESSES IN DIFFICULTY

Overview

• Business entities may find themselves in financial

distress for a multitude of reasons.

• One of the functions of financial management is to

assist these businesses, in the form of sound advice and

with assistance in using the appropriate tools at their

disposal.

• Here, businesses could restructure/reorganise

themselves within the guidelines of the Companies Act;

• they could enter into voluntary liquidation; or

• restructure by means of divestiture, or

• an absorption or

• amalgamation with another entity.

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