Small businesses with high leverage ratios are less vulnerable to economic downturns,but they have a lower potential for large profits.

Question

Quizplus · Accepted Answer

Small businesses with high leverage ratios are actually more vulnerable to economic downturns because they have a higher risk of not being able to make debt payments. However, they do have a higher potential for large profits because they are using debt to finance growth and expansion.

Small Businesses with High Leverage Ratios Are Less Vulnerable to Economic