As a company's level of debt increases,bankruptcy risk increases.

Name: As a company's level of debt increases,bankruptcy risk increases.
Brand: Quizplus
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Question

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As a company's level of debt increases, the interest expense on that debt also increases, which can make it difficult for the company to meet its financial obligations. This can lead to bankruptcy if the company is unable to pay its debts and creditors start taking legal action against them. Therefore, increasing debt levels do increase bankruptcy risk.

As a Company's Level of Debt Increases,bankruptcy Risk Increases