You are considering the purchase of a corporation's stock.You have noted that this particular corporation has a high use of debt,which is associated with ________ risk.
A)business
B)financial
C)corporate
D)market
E)none of the above

Question

Quizplus · Accepted Answer

High use of debt is associated with financial risk, as it increases the likelihood of the company facing financial difficulties and possibly even bankruptcy if they are unable to make their debt payments.

You Are Considering the Purchase of a Corporation's Stock