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The management of an airline suffering from financial distress decides to put off its plans to remodel some of its planes interiors in order to
The management of an airline suffering from financial distress decides to put off its plans to remodel some of its planes interiors in order to attract more business clientele since the additional expected cash flow generated would only go to pay off its bondholders. Instead, management uses the funds to repurchase some of its outstanding shares.This problem is know as
failure to maintain
reluctance to liquidate
underinvestment
stakeholder holdup
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