In general, the greater the debt a business owner is willing to take on, the ________ the risk tolerance.

Question

Quizplus · Accepted Answer

The greater the debt a business owner is willing to take on, the higher their risk tolerance. This is because taking on more debt typically involves more risk, as the business is now obligated to make interest payments and repay the principal amount borrowed. A higher risk tolerance means that the business owner is more comfortable taking on risk and potentially experiencing losses or setbacks in order to potentially achieve greater rewards or success in the long run.

In General, the Greater the Debt a Business Owner Is