As a company's level of debt increases,bankruptcy risk increases.

Name: As a company's level of debt increases,bankruptcy risk increases.
Brand: Quizplus
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Question

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As a company's level of debt increases, their ability to meet debt obligations may become unsustainable, which increases the risk of bankruptcy. Higher debt levels also make it harder for a company to secure additional financing or to withstand changes in the economic environment.

As a Company's Level of Debt Increases,bankruptcy Risk Increases