BANKRUPTCY OF THE ENTERPRISE: ESSENCE, CAUSES AND CONSEQUENCES

Abstract

The article examines the issue of bankruptcy of enterprises in today's changing economic environment. The issue of bankruptcy in Ukraine is quite common, unfortunately, at the moment. The interpretation of the concept of bankruptcy of economists by chronology to assess the change of positions and approaches to understanding its essence is considered. The understanding of bankruptcy at the legislative level, in the relevant regulations in its current definitions in the Commercial Code, the Bankruptcy Code of Ukraine, the Criminal Code of Ukraine is studied. The priority problems that arise in the economy during the bankruptcy process of the enterprise are identified, including reduction of demand for products, reduction of production, growth of debts to various borrowers, wage arrears, changes in the economic environment. The main causes of bankruptcy among companies operating, as well as factors, both internal and external, that can potentially affect businesses. The causes of bankruptcy are combined based on the factors of influence and current preconditions in the main groups: bankruptcy of the business, bankruptcy of the owner, bankruptcy of production and "unfair management". The main modern preconditions for bankruptcy of enterprises, as well as factors that could potentially affect the functioning of enterprises are highlighted. The issue of the need to warn about the likelihood of bankruptcy at the enterprise as one of the prerequisites for its avoidance has been identified. The main measures to prevent and prevent bankruptcy are also highlighted. It is shown that bankruptcy is a regulator of a market economy and demonstrates the possibility of avoiding unprofitable inefficient business entities, which have no chance to restore the success of their business. The main task of avoiding bankruptcy has been identified, namely the timely identification of a number of signs that directly predict the emergence of a crisis, such as: low staff skills, changes in balance sheet items, credit growth and receivables and others. Also, attention is paid to the need for constant monitoring of the financial condition of the enterprise to neutralize the negative consequences.