Financial Distress Paper Essay

The current ball-shaped economic crisis has seriously affected the financial activities of my academic institution. One of the major(ip) donors for our business school, a bank, has pulled out and is currently facing charges of breaking federal official banking regulatory laws. All indications atomic number 18 that the bank volition go under and will fool to file for protection under chapter 11. With this conduit of funds no longer there, the business school will have to restructure.There are five programs currently in place at the business school, iii of which are involved in teaching and research. They have been in existence for the last thirty years. As the head of faculty for the business school, I will recommend to the long range planning committee that the restructuring be directed at the other two programs. These are recently introduced alum management courses, whose students, ingraineding fifty in number, can be gradually imprisoned within the other graduate business courses.The cuts will therefore have to be effected within the faculty staff of the two programs be phased out. All tenured and non-tenured faculty staff will receive a one year termination notice with full severance benefits. Since their total combined yearly compensations is about as much as missed donor funding, the scaled down business school will be able to survive until other avenues are found to fund untried programs. These recommendations will be made based on the need to fulfil teaching and research as a priority.Students who are currently enrolled in all programs will not suffer as they will be retained to continue learning within the existing programs. Additionally, the retrenchment will not be abrupt, but will be implemented everyplace the course of one year, giving affected faculty staff sufficient time to appeal or seek positions elsewhere. Distress Paper 2 References Senate of Michigan Technological University (1985, May). UNIVERSITY RETRENCHMENT POLICY. Retrie ved August 1, 2009 from http//www. sas. it. mtu. edu/usenate/propose/80-89/7-85. htm