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प्रश्न
How does higher financial risk affect the suitability of taking on more debt?
पर्याय
It makes interest payment optional
It increases the suitability of taking on more debt
It reduces the suitability of taking on more debt
It removes debt’s fixed repayment obligations
MCQ
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उत्तर
Debt involves fixed repayment obligations, whereas equity does not. When financial risk is higher, taking on more debt becomes less suitable.
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