What prevents a company from borrowing a ton of money, spending it all, declaring bankruptcy, and never paying back its creditors?
Details: say the CEO gets a huge “salary” (this is actually borrowed money), buys himself a bunch of toys, then declares bankruptcy and never repays the money. What is the punishment for said CEO?
uh…the fact no responsible or intelligent entity would lend money to such an orginization in the first place?
