The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.

Name: The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Debt requires regular interest payments and eventual repayment of the principal, which can strain a business's cash flow, especially if the business is not generating sufficient revenue.

The Problem with Using Debt to Finance Business Activities Is