Which one of the following groups is most apt to push a company towards ﬁling bankruptcy once the ﬁrm becomes ﬁnancially distressed?
A) Executives.
B) Employees.
C) Stockholders.
D) Secured bondholders.
E) Suppliers.

Question

Quizplus · Accepted Answer

Secured bondholders have a legal claim on a company's assets, which means that if the company goes bankrupt, they are more likely to recover their investment compared to other stakeholders. As a result, secured bondholders may not be willing to negotiate or restructure debt, pushing the company towards bankruptcy.

Which One of the Following Groups Is Most Apt to Push