WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 17, 2020
Bankruptcu Risk Assessment Measures of Polish SMEs
Authors: ,
Abstract: The accuracy of economic decisions depends on the quality of financial information, mainly derived from financial statements prepared by business entities and other units. Thus, there is a need to create so-called information systems for early warning. Good information could protect many entities from the risk of bankruptcy. This is particularly true for micro, small and medium-sized business entities. For such entities there is a need to create simple indicators informing about the impending financial crisis, most often associated with the loss of the ability to settle current liabilities. The aim of the article is to present a group of financial indicators on the basis of which managers can easily and most importantly very quickly assess the possibility of financial difficulties arising, which will result in the bankruptcy of an individual. Most importantly, the indicators presented can be used by managers of small enterprises with great ease. The indicators presented are primarily addressed to a group of small and medium-sized enterprises thanks to which managers can protect an enterprise against bankruptcy.
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Pages: 14-20
DOI: 10.37394/23207.2020.17.3