Disposing a business unit to avoid insolvency

Seminar paper from the year 2016 in the subject Business economics - Business Management Corporate Governance grade: A University of Mnster language: English abstract: In this assignment a business is assumed operating across a number of different business units and facing liquidity issues according to its business plan forecast. To investigate the challenge of avoiding insolvency the paper is divided into four chapters. The first part deals with the fundamentals of insolvency as well as the basics concerning management information systems (MIS). Based on the fundamental information the main part is focused on tools to defeat the threat of insolvency. Firstly it will be pointed out how MIS can be used to monitor the triggers of an insolvency. In this connection MIS in terms of risk management systems (RMS) will be discussed. Subsequently it will be shown how the disposal of a business unit is a further alternative to avoid insolvency. In the final chapter the main results will be summarized.