Page 284 - AAA Integrated Workbook STUDENT S18-J19
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Chapter 193 4
To do this the company must ask its stakeholders to surrender some or all of their
existing rights and amounts due. They do this in exchange for new rights under a
new or reformed company and a share of the benefits that could arise due to future
investment.
This may be more appealing than the alternatives, which include:
to remain as they are, with the prospect of no return from their investment and
no growth in their investment, or
to accept whatever return they could be given in a liquidation.
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