Bankruptcy is the process by which an entity can get a "fresh start" by canceing 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: Spordyne Inc.. is one of the renowned sports brand management firms in North America. The IRS recently audited the company and heavily penalized the firm for tax evasion, and the company had to pay huge penalties to the government. This crushed Spordyne's resources, and the company had to file for bankruptcy. Based only on the information given in the case, what is the most likely cause of Spordyne's failure? Unexpected increases in interest rates O Fraud O Loss of clients O Too much debt 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 imrhediately? Check all that apply. Evaluate different methods of dealing with the financial distress. Should the firm file for bankruptcy or pursue informal procedures? Identify the new incentive structure for the company's management in the future. Identify whether the firm's long-run assets have suffered economic losses; if they have, then identify how the remaining value of the firm should be distributed Identify modified accounting techniques to obscure financial information submitted to the company's investors Identify whether the firm's inability to meet scheduled debt peyments is a temporary cash flow problem ora permanent problem caused by asset values falling below debt obligations