A business facing financial troubles may declare bankruptcy to restructure debt and negotiate with creditors. While bankruptcy provides relief from debt obligations, it also damages the business's credit and reputation. Alternatively, the business could sell a portion to a turnaround management company who could help devise a recovery plan through their expertise in returning struggling businesses to profitability.

1. "Business Turnarounds" Please respond to the following:
Create a scenario in which a business’s most attractive option
may be to declare bankruptcy identifying the benefits and
consequences of the filing. Provide a rationale with your
response.
Create a scenario in which you would sell a portion of your
financially troubled business venture from Assignment 1 to a
turnaround management company in hopes of getting the
business back on track. Provide support for how this may be a
desirable option.