1. Financial distress Bankruptcy is the process by which an entity can get a "fresh start" by canceling or significantly restructuring its existing debt through the order of a judicial body. Business failures can lead to bankruptcy for various reasons. Consider the following case: The Mitata Company's board of directors replaced the company's chief executive officer and the chief finance officer for the third time in the past five years because of inefficient performance. The company has been having operational issues. The company recently announced that it will be filing for bankruptcy. Based only on the information given in the case, what is the most likely cause of Mitata's failure? Too much debt Unexpected increases in interest rates Price wars with competition O Weak management Suppose you are a part of the senior management of a company that is in financial distress. Which of the following issues would you focus on addressing immediately? Check all that apply. Evaluate different methods of dealing with the financial distress. Should the firm file for bankruptcy or pursue informal procedures? Identify different strategies to increase revenues in the long run that will help service long-term debt. Identify whether the problem is temporary, and then work out a deal with creditors that allows the firm more time to recover and make payments. Identify whether the firm's inability to meet scheduled debt payments is a temporary cash flow problem or a permanent problem caused by asset values falling below debt obligations. Identify strategies for the modified distribution policy for the following year