Assignment:
Reading the following chapters Bankruptcy and consumer credit transaction.
Purpose
The purpose of this power point project is to research and analyze debt management, bankruptcy options and consequences bankruptcy for businesses.
This project requires you to identify and assess legal issues, apply law to facts and make recommendations.
Course outcome met by this project:
Analyze and apply principles of secured transactions, creditor-debtor rights, and bankruptcy in the business environment
Background:
After five years of operations, the economy began to slow due to inflation and rising interest rates. The result was rising prices in consumer goods and a marked reduction in discretionary spending. In addition, consumer credit was affected by late payments and defaults.
This had a three-pronged negative effect on PI. First, there was a significant reduction in new contracts for paint jobs. Second, the price of paint took a steep jump, and finally, many customers to whom credit was extended for paint jobs began falling behind on payments and in some cases defaulted on their credit agreements.
This has severely hurt PI's financial condition and the company experienced a loss during the first quarter of the current year and the forecast for the next quarter does not show any improvement. As a result, the three owners have asked their accountants for a complete audit of the company's books.
After meeting with their accountants, Jo, Maddy and Taylor have asked BCA for advice about the options that are available to mitigate their losses, including whether to file for bankruptcy or explore other remedies.
Pat and Gale have been asked to research possible options available to PI and prepare a Power Point presentation for PI regarding your findings.
Instructions:
Before you begin your research and analysis, review the summary of the accountants' audit.
Part I. Bankruptcy Options
Research and analyze the two bankruptcy options available to PI.
A. Bankruptcy Option 1:
Explain in detail the requirements for this type of bankruptcy and the steps required in the filing process.
B. Bankruptcy Option 2:
Explain in detail the requirements for this type of bankruptcy and the steps required in the filing process.
Part II. Options other than Bankruptcy
Research, analyze and explain possible options available for PI outside of filing for bankruptcy.
Part III. Recommendation
Recommend a course of action for PI and explain why it is the best option for PI.
Format:
There is no set number of Power Point slides but include a title page and a reference page.
Please place all notes and explanations for EACH slide directly on slides in the PPT presentation - not in a separate document. You likely will need more than one PPT slide for each point/idea/concept so that everything you want to say/include in the presentation will be contained in the PPT slides.
You should use only assigned resources available in the classroom for the project.
If needed, please refer to the following links for tips on preparing a PPT presentation.
Use in text citations, as needed.
Include a References List of cited resources.