If a corporation that is in financial difficulty has been capitalized with shareholder debt and a small

Question:

If a 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 may have a better chance of surviving. Why is this so?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...