Sometimes those who exert their personal influence over others wheedle their way into corporations. Fudged or false financial figures are sometimes displayed to the public, all while the company is on a debt-laden rocky ship.
Why do some think it’s okay to use their influence to fund their greed? We’ll never know, but not everyone in business who becomes insolvent is unethical, by any stretch. Compare what happens in large corporate insolvencies (from unethical conduct) to the average small business owner whose company goes insolvent from poor management. If the small business owner has no assets to pay an insolvency practitioner, they often become personally liable for debts, particularly guaranteed loans. Many suffer terrible anxiety and humiliation along with this bankruptcy. Without lending and assets, few return to a place where they can operate a cash-flow-happy business.
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