Abstract
There are many factors that lead businesses to bankruptcy. The risk environment created as a result of changes in some macroeconomic indicators such as exchange rates, interest rates, inflation, and financial instability as a result of the inability to manage risk properly cause businesses to go bankrupt or an economic crisis. The bankruptcy of a business imposes a cost not only on stakeholders, but on society as a whole. In this context, in order to ensure economic welfare and maintain the economic existence of enterprises, the function of the institution of concordat in the execution and bankruptcy law has been increased; the way of restructuring their debts in accordance with the final decision of the court in line with the consent of their creditors has been opened for the debtors. In the study, the institution of concordat was examined in outline, the reasons leading businesses to concordat were evaluated, and solution suggestions were developed.
TopConcept Of Concordat And Purpose Of Concordat
Concordat means agreement, which is the equivalent of the Italian word “concordat”. TDK defines ‘concordat ‘ as Collateral bankruptcy as the term of law and economy and as an agreement between the papal authority and other provisions as the term of history.
This definition falls short of explaining the concordat in terms of quality. Because the concordat does not meet the meaning of bankruptcy. On the contrary, it is an opportunity for debtors to maintain their economic assets before bankruptcy (Akyürek, 2019, pp.23-24).
Key Terms in this Chapter
Profit: It is the positive difference between the income and expenses of a business at the end of a certain period.
Cashis: It is the basic input that businesses use while carrying out their work, and it gives power and life to businesses by providing profit and payment power.
Concordat: It is a forced agreement made by a debtor with a certain majority of his creditors and valid with the approval of the commercial court.
Family Businesses: It is expressed as businesses that carry out their activities under the control of family members, and where the determined value judgments and profit-making methods are determined by the members of the family in question.
Risk Management: It is expressed as a process consisting of pre-defining, evaluating, managing and controlling possible events and situations in order to provide reasonable assurance for the organization to achieve its objectives.
Business Ethics: It is in general, means knowing what is right and wrong in the business environment and doing the right thing.
Risk: It is the probability that an event will occur and adversely affect the success of the organization in achieving its goals.