What is Zombie Firm?
Zombie firms are businesses that are able to continue operating despite being insolvent or unprofitable, often relying on external support, such as loans or subsidies, to sustain their operations. These firms should typically have gone out of business due to their financial difficulties but continue to exist, often at the expense of economic efficiency and growth.
OTHER TERMS BEGINNING WITH "Z"
- Z Score
The Z-score formula for predicting a company's bankruptcy was first published in 1968 by Edward Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula predicts the probability that a firm will go…