Business organizations, like any other ventures, are not immune to the complexities of economic downturns that may be brought about by volatile market conditions, shifting consumer preferences, or unforeseen global events. Whether it is a multinational corporation navigating international markets or a small family-owned business operating in a local community, the impact of economic fluctuations can reverberate across industries and sectors.

In light of the implementation of various community quarantine measures brought about by the COVID-19 pandemic, many business establishments were either prevented from operating or permitted with limited operational capacity. As a result, many entrepreneurs incurred significant financial losses. Due to the uncertainty of the resolution of the pandemic, and to thwart further losses, many businesses were constrained to cease their operation and finally close.

However, it is worthy to note that the law provides for a remedy other than business closure.