Walden University Wk 6 Bankruptcy Law and Entrepreneurship Discussion

Bankruptcy

Entrepreneurs should always be aware that their new venture has certain risks. Whether they be financial, market, or organizational risks, they are risks just the same. Even though an entrepreneur is mindful that the venture could fail, it is necessary to develop a plan for a possible collapse.

Based on your reading for this week:

(1) Is filing bankruptcy ethically and socially responsible?

(2). If so, under what conditions?

(3). Please GIVE CLEAR examples.

(4). What would you do if you saw your business on the verge of collapse?

With these thoughts in mind:

Write a minimum of 250 words or more statement that addresses the questions listed above. Make sure EACH Question is clearly answered and supported by one or more scholarly sources.

Reading

• Course Text: Hisrich, R.D., Peters, M.P., & Shepherd, D.A. (2020). Entrepreneurship (11th ed.). New York: McGraw-Hill Irwin.

Chapter 15, “Succession Planning and Strategies for Harvesting and Ending the Venture”

In this chapter, you will learn about the various methods for exiting the business venture. You will examine the bankruptcy process, including an analysis of the three bankruptcy alternatives. You will explore the importance of developing an exit strategy or a succession plan. Finally, you will cover the details involved with the sale of the business to employees or other external sources.

Focus on the definitions provided throughout the chapter. Review and think about the examples and anecdotes provided in the chapter that illustrate the major ideas being conveyed. Consider the last time you heard information regarding a business that was filing for bankruptcy. Do you remember what chapter of bankruptcy the organization was filing under? Does bankruptcy mean that a business has to completely cease operations?