What is it in the economy?

Advisory assistance involves injection of liquidity into the failing society to prevent it from falling. The sources of this liquidity may vary, as well as the form of liquidity. In general, the assistance is done when the authorities believe that allowing the collapse of the company could have terrible consequences. For example, if a large investment firm has fallen, this may cause ripple in stock trading and securities that could cause economic problems. Therefore, it is assumed that the assistance is justified because it prevents greater calamity. In some cases, the government may finance rescue, usually in the form of loans that the company is expected to repay when it becomes solvent again. In other cases, a group of investors may gather and offer rescue. In these situations, investors often gain control of the fighting company by offering help; Because the alternative is bankruptcy, the company generally agrees to the terms of rescue and hopes that some staff will be able to stayon. In other cases, assistance may include shares and bond trades. As it is a large amount of money, assistance must generally be approved by government agencies that work on the prevention of monopolies and which monitor the market in general, especially if the funds come from the government.

There are a number of reasons why the company finds itself in a situation where it might need to rescue. In some cases, the company apparently has the potential to prosper, despite the short -term problem with cash flows, and rescue simply makes good economic meaning. For example, several car manufacturers were helped with government rescue assistance, which used funds to satisfy creditors and reworking their products to meet the Demands market. In other cases, help may be needed because the company could not invest wisely or could not record signs of problems earlier, nIt will be too late.

help are not controversial. Some people believe that fighting companies should simply be justified to bankruptcy, as their financial problems clearly illustrate the lack of the ability to cope with the market. Government rescue can be particularly acronive, and some people feel that the government rescue will exceed the line in the free market. Pronunciation rescue claims that they can maintain markets stable during problem times and can maintain valuable national resources; For example, the rescue of a national car manufacturer may be beneficial because it maintains some car production in this country. This can be useful in terms of national security, as this ensures that useful skills and devices are maintained.