What is typically the outcome of a straight bankruptcy for a company?

In a straight bankruptcy, which is formally known as Chapter 7 bankruptcy in the United States, the primary outcome is the liquidation of a company's assets. This procedure entails selling off the company's assets to pay creditors and settle outstanding debts. Once the bankruptcy is filed, a court-appointed trustee oversees the liquidation process, ensuring that assets are sold and the proceeds are distributed among creditors according to the priority established by bankruptcy law.

In this scenario, the company typically ceases operations, as an important aspect of straight bankruptcy is that it allows the business to exit the market entirely, unlike options that involve reorganization or maintaining operations. The aim is to settle as many debts as possible through the liquidation of the company's remaining value, leading to the eventual dissolution of the business. Therefore, the answer correctly reflects the fundamental nature of a straight bankruptcy process.