ECONOMIC ASPECTS OF BUSINESS BANKRUPTCY

Abstract

The examined issue is important from an economic point of view, as it prevents the duplication of errors in strategic management and allows avoiding a crisis. The aim of the article is to present the economic factors responsible for the bankruptcy of three selected enterprises. Presenting their history and reporting the results of the financial analysis of the described enterprises based on selected models were adopted as detailed objectives. The subject of the analysis was three companies that declared bankruptcy: Alma Market S.A., Nokia and The Hertz Corporation. The time range covers the years 2012-2020. The data comes from the companies' profit and loss accounts and the annual financial balance sheets published by the companies. The research shows that a crisis situation in an enterprise may have various causes, ranging from a defective management system, through destructive competition, to a paralysis of the global economy caused by a pandemic. An in-depth analysis of selected companies has shown that the quickly recognized beginnings of the financial crisis make it possible to take appropriate remedial steps and avoid bankruptcy. Nowadays, companies that adapt to the ever-changing technology and customer preferences can avoid bankruptcy.