As a side benefit,better risk management decreases the firm's debt capacity.

Name: As a side benefit,better risk management decreases the firm's debt capacity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Better risk management can increase the firm's debt capacity as it makes the business more attractive to lenders and investors. By minimizing risks and potential losses, the firm's creditworthiness improves and it may be able to obtain financing at better terms and higher amounts.

As a Side Benefit,better Risk Management Decreases the Firm's Debt