Question

Suppose TouchTech, a hand-held computing firm, is selling bonds to raise money for a new lab—a practice known asequity finance. Buying a bond issued by TouchTech would give Andrewa claim to partial ownership in the firm. In the event that TouchTech runs into financial difficulty,the stockholders

Answer 1

there is no obligation to repay the money acquired through equity finance by the company. Therefore when they run on a loss they both suffer the loss and the company does not have to pay back the stakeholders.

Step-by-step explanation:

Answer 2

Answer: the stakeholders will not get paid (there is no obligation to repay the money acquired through equity finance by the company)

Step-by-step explanation:

there is no obligation to repay the money acquired through equity finance by the company. Therefore when they run on a loss they both suffer the loss and the company does not have to pay back the stakeholders.