A discussion on government assistance in Scotland
This article considers the nature and effectiveness of government involvement in corporate insolvency. Using the actions of the Scottish government as an example, the article analyses a series of government interventions in distressed businesses, considering the nature and aims of each intervention before evaluating their effectiveness. Using these examples to draw conclusions about the effectiveness of government intervention in corporate insolvency, the article then proposes alternatives to direct intervention. Ultimately the article concludes that direct state intervention may achieve certain aims but cannot cure fundamental flaws in a business.
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