Risks associated with debt affect both a company and its creditors.

Question

Quizplus · Accepted Answer

Risks associated with debt can impact both the company that owes the debt and its creditors who are owed the debt. For the company, too much debt can lead to financial instability and bankruptcy, which can negatively impact its operations and financial standing. For creditors, the risk of default on the debt can lead to financial losses and impact their own financial stability.

Risks Associated with Debt Affect Both a Company and Its