Ping-Chen Lin of the National Kaohsiung University of Applied Sciences in Kaohsiung and Jiah-Shing Chen of the National Central University, Jhongli, in Taiwan, explain how the financial status of any company can be of interest not only to its owners and employees but to a range of creditors, stockholders, banks, and individual investors. However, there are so many changing and interconnected factors that can lead to success or failure that it is usually considered an impossible task to predict whether a company will fail.
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