Question: If a corporation that is in financial difficulty has been capitalized with shareholder debt and a small amount of share capital as opposed to the
If a corporation that is in financial difficulty has been capitalized with shareholder debt and a small amount of share capital as opposed to the reverse, the shareholder may be at less financial risk and the corporation may have a better chance of surviving. Why is this so?
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Capitalization with more shareholder debt and less share capital may provide a tax advantage when a ... View full answer
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