When a firm goes bankrupt, shareholders ______. Multiple choice question. can sue for loses cannot recover their risk capital ar

Question

2 years ago

11

e entitled only to a fraction of their investment are entitled to help pay off debtors owed money by the firm

1 answer:

TEA [102] · Answer 1 · 2023-02-19T20:01:40+03:00

In a case whereby a firm goes bankrupt, shareholders cannot recover their risk capital.

This is because they have loose alot in the investment.

<h3>What is Bankruptcy?</h3>

Bankruptcy can be explained as legal process in which an organization that cannot repay debts to creditors may seek relief debts.

Learn more about Bankruptcy at;