Give an example of a reluctance-to-liquidate problem.

1. Give an example of an underinvestment problem.
2. What kinds of firms are most likely to be influenced by underinvestment costs when choosing a capital structure?
3. Give an example of a reluctance-to-liquidate problem. Is this an issue that could hurt only the creditors, or only the shareholders?
4. What kinds of firms are most likely to be influenced by possible reluctance-to-liquidate costs when choosing a capital structure?