A modern economy is built on three foundational aspects comprising the freedom to enter, to operate on fair and neutral terms, and to exit a business. The first two draw most of the attention, but the third is quieter and equally important. An economy that fundamentally recognises that failure is the unavoidable companion of risk does not penalise the very risk-taking that leads to successful businesses. If designed and enforced well, a law dealing with insolvency or closure of businesses can help firms reorganise and recover while allowing unviable ones to exit before they drag the broader economy with them.