Construction firm Carillion has gone into liquidation

Construction firm Carillion has gone into liquidation

Assessment

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Business

University

Hard

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Carillion, a major UK construction company, collapsed due to financial mismanagement, affecting 19,000 jobs and public services. Despite warnings, the government continued awarding contracts. The company had significant debt and pension deficits, leading to losses for banks and potential costs to the pensions lifeboat. Hedge funds predicted Carillion's overvaluation, which the board dismissed. The collapse raises questions about private companies' roles in public services.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary concern following Carillion's collapse?

The increase in government contracts

The rise in stock prices

The effect on UK-based jobs and public services

The impact on international markets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why were there questions about the awarding of contracts to Carillion?

Because it was a new company

Due to its ongoing financial difficulties

Due to its international reputation

Because of its strong financial position

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the estimated debt Carillion was carrying?

£2 billion

£500 million

£900 million

£1 billion

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did some hedge funds believe about Carillion since 2015?

It was undervalued by the stock market

It was overvalued by the stock market

It was a government-owned entity

It was a stable investment

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What debate was ignited by Carillion's demise?

The role of private companies in public services

The effectiveness of international trade agreements

The impact of technology on construction

The future of renewable energy