why bailout a company 
a company may need a bailout if it is facing severe financial difficulties that threaten its survival such as mounting debts declining revenue or a sudden downturn in the market a bailout can provide the company with the necessary funds to continue operating restructure its operations and pay off its debts usually a company would be bailed out only if allowing it to fail would have significant consequences for the wider economy the benefits of a bailout are that it can prevent the collapse of a company or organization and its industry preserve jobs and maintain economic stability this is especially true if a company s collapse will have ripple effects that can bring about even more corporate failures 