Companies with a great deal of long-term debt are considered to have high _____ risk.

Name: Companies with a great deal of long-term debt are considered to have high _____ risk.
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Question

Quizplus · Accepted Answer

Long-term debt increases a company's financial risk, as it has to use its future cash flows to pay off the debt, which can negatively impact its ability to invest in growth opportunities or handle unexpected expenses. Therefore, companies with a high amount of long-term debt are considered to have high financial risk.

Companies with a Great Deal of Long-Term Debt Are Considered