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Examples of companies that have failed/universal concerns.

The universal concerns of financial management are controlling costs, ability to have available cash to pay obligations, ability to access capital for expansion and the ability to conserve the asset base of the organization. Give an example of a company that has failed in at least one of these universal concerns. Further discuss the implications of the failure on the viability of the agency.

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We can look at several different examples that have taken place over the past five or six years.

Lehman Brothers Holdings, Inc - This was a highly publicized bankruptcy that occurred towards the end of 2010. Lehman Brothers was a long-time investment bank that literally crumbled under the mortgage industry economic conditions, which caused the company to not be able to have sufficient cash to pay their obligations. The company was actually accused of using illegal accounting practices in an attempt to hide the financial conditions that they were in. When all of the facts surfaced, it came out that the company literally drowned in their own debt.

Delta Airlines - Back around 2005, the airline company was unable to raise further capital for expansion. Combined with soaring fuel prices that drove costs up, the company declared failure and claimed bankruptcy. At the time, Delta had the ...

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The universal concerns of financial management are controlling costs, ability to have available cash to pay obligations, ability to access capital for expansion and the ability to conserve the asset base of the organization. Give an example of a company that has failed in at least one of these universal concerns. Further discuss the implications of the failure on the viability of the agency.

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