Indirect costs of bankruptcy are born principally by:
A) bondholders.
B) stockholders.
C) managers.
D) the Federal government.
E) the firm's suppliers.

Name: Indirect costs of bankruptcy are born principally by: A) bondholders. B) stockholders. C) managers. D) the Federal government. E) the firm's suppliers.
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

Indirect costs of bankruptcy, such as loss of customers, suppliers, and employee morale, primarily affect stockholders as they bear the residual risk and potential loss in firm value.

Indirect Costs of Bankruptcy Are Born Principally By