Relationship between leaders and bankruptcy Language Essay (Essay Sample)

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Analyze the possible relationship between leadership and bankruptcy.
According to Diandra & Azmy, (2021), the composition of leadership and its structure impacts bankruptcy within an organization. Leadership main role is controlling an organizations growth in terms of finances and making tough decisions that involves finances. If firm management is compromised then most organizations become bankrupt. Strategic leadership style is required in any organization in order to experience growth, large profit margins, employee turnover rate and motivation of workers (Kim, 2020).According to an in-depth study that was conducted by FMI Corporation on poor strategic leadership as the main cause of large contractor bankruptcies. This proves beyond any reasonable doubt that there is a positive relationship between leadership and bankruptcy (Markell, 2020).In situations where companies run into financial crisis or distress; it is worth noting that the main backbone of firms succeeding in their businesses relies on their financial performance and proper leadership. Even if there is good leadership and the company is not making profit due to market challenges like high taxation imposed by the government, inflation, high cost of production and competitors. Companies are still bound to fail, unless proper leadership style is in place and finances are well taken care of to avoid downturn and reduced profit margins.