Bankruptcy and insolvency of an enterprise: content analysis, common features and differences

The subject of this study is insolvency management in the crisis management process. The object of the study is a content analysis of definitions of enterprise insolvency and bankruptcy as a consistent, focused interaction of people aimed at strictly defined, aggregate, final performance results. This result becomes a source of common interest and a means of satisfying the needs of all business entities. The study offers the author's interpretation and definition of enterprise insolvency and bankruptcy as an element of the enterprise crisis management system, since a neglectful attitude toward crisis management and the distribution of everyday skills for measuring them in business decision-making, forecasting, etc. leads to a decrease in business performance. The theoretical and methodological basis of this study is based on fundamental works by foreign and domestic scholars devoted to the insolvency and bankruptcy of enterprises within the crisis management system and the factors influencing the risk of bankruptcy. This paper summarizes theoretical and practical approaches to interpreting the terms "insolvency" and "bankruptcy," defining a conceptual framework based on this framework and conducting a comparative analysis of these definitions. The author provides an interpretation of the concept of "insolvency," identifies it in relation to the financial relations of an enterprise's crisis management system, and clarifies the concept of bankruptcy, taking into account the increasing uncertainty of the external and internal environment and the need for forecasting and prediction. The reliability and validity of the scientific conclusions, provisions, and recommendations are based on the extensive use of structural-logical, empirical, and economic-mathematical research methods, as well as the consistency of specific results with the fundamental principles and basic tenets of scientific concepts. The theoretical and methodological results of the research were confirmed during the content analysis.