[inetknght]

> Companies usually also have more flexibility to increase their income, or decrease their expenses compared to an average person.

What actions do companies have available to them which consumers do not with regards to income or expense management??

[DeonPenny]

For example, if you're GM and a lot of cars aren't selling you can shut down factories, repatriate assets, do stock buybacks, increase automation and more. If you're a person whose major asset is a house if you can't sell the house for enough to catch up on your debts or get a way better job. What can you do.

[brisance]

File for Chapter 11 bankruptcy. This gives the company some time to get things under control to pay off its creditors. Or if it's a GigaCorp like $GM, $F etc go complain to the politicians and hope they do something, although seeing how dysfunctional things are with parts of the US Government itself shut down, a good outcome is unlikely.

[gammateam]

I KNOW THIS ONE!

Public companies have the capability of selling treasury shares, and also diluting all shares and selling the newly minted shares

Public and also closely held companies also have the capability of offering new corporate loans on specific revenue streams

Finally, both public and closely held companies have a greater timeline. They issue 5-10 year loans in a good market and low interest environment, pay low amounts of interest for several years during a bad market, and then issuing new loans in a good market again.

And of course, bankruptcy not affecting the cash finances of any particular person in the company, or that individual's ability to acquire new credit. While the company entity itself takes the temporary reputational hit.