Corporate governance weaknesses has been regarded as one of the key factors that cause financial distress...

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Corporate governance weaknesses has been regarded as one of the key factors that cause financial distress in companies. Researches have found that poor economic prospects make agency problem worse in companies with weak corporate governance especially in developing countries like Kenya. Required Discuss FIVE warning signs that a business is likely to fall into financial distress. (10 marks) (a) Identify a company in Kenya that has undergone major financial distress in the last five years and; (1) (b) Discuss the distress clearly identifying its cause. (6 marks) Explain the company's and regulators response to the distress. 6 marks) Discuss how the problem can be attributed to corporate governance weaknesses. (ii) (iii) Corporate governance weaknesses has been regarded as one of the key factors that cause financial distress in companies. Researches have found that poor economic prospects make agency problem worse in companies with weak corporate governance especially in developing countries like Kenya. Required Discuss FIVE warning signs that a business is likely to fall into financial distress. (10 marks) (a) Identify a company in Kenya that has undergone major financial distress in the last five years and; (1) (b) Discuss the distress clearly identifying its cause. (6 marks) Explain the company's and regulators response to the distress. 6 marks) Discuss how the problem can be attributed to corporate governance weaknesses. (ii) (iii)

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a1 A significant decline in sales or revenue could be a warning sign that a company is heading towards financial distress This could be due to a numbe... View the full answer