Analysis of The Corporate Bankruptcy Decision

        After Critically reviewing this article, it is suggested by the analysis of this article numbers of failing organization are trying to continue their business in small line from which they have made losses in past. It is defined by the United States law of the bankruptcy by helping the firm slightly for moving them toward the long term efficiency the resources of these firms can be utilized for higher values uses and it is appear for delaying the movement of the resource. The critical analysis of the articles also defines the classification of the bankruptcy in this paper which is liquidation reorganization and bankruptcy.  

        For analyzing the effects of the rules of the priority according to the economic efficiency it is describes by the model how this decision can be taken and the data is collected from the sample of the 500 firm to analyzing the either the firms can be filed in the bankruptcy or not.  This model is also used for discussing the decision of the bankruptcy which is declared under the several circumstances. The mangers are working for maximize the equity and their value for taking the decision of the equity.

        After doing the critical analysis of this article it is concludes as the prices are used for the losses of the deadweight are considered as the limited liability for the firm stake holders. I have argued for this research article the losses for little deadweight must be according to the consequences of the unavoidable procedures of the bankruptcy and this procedure cannot be eliminating by using any reforming activities [1].