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.
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Question

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Indirect costs of bankruptcy, such as loss of reputation and business disruption, primarily affect stockholders as they bear the residual risk and potential loss in equity value.

Indirect Costs of Bankruptcy Are Born Principally By