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For an Entrepreneur, a Reliance on Debt as His or Her

Question 47

Multiple Choice

For an entrepreneur, a reliance on debt as his or her main source of capital can be a problem for which of the following reasons?


A) Most forms of debt require monthly payments of principal and interest, which hurts cash flow just when the company needs it most.
B) Too much debt can hinder the firm's ability to raise more capital.
C) Too much debt can raise the cost of additional capital.
D) All of the answers are correct.
E) None of the answers apply.

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