High levels of debt can be a positive force because it allows firms to:
A) take advantage of expansion opportunities.
B) postpone unnecessary investments.
C) invest in tax avoiding ventures.
D) maintain their value creation.

Question

Quizplus · Accepted Answer

High levels of debt can allow firms to take advantage of expansion opportunities that they may not have been able to pursue otherwise. Debt can provide the necessary funding for large projects or investments that will ultimately increase the value of the company.

High Levels of Debt Can Be a Positive Force Because