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प्रश्न
Which comparison of financial risk for debt and equity is correct?
पर्याय
Debt is lower due to fixed commitments; equity is higher for the business
Debt and equity both require compulsory dividends
Debt and equity both have the same fixed repayment commitment
Debt is higher due to fixed commitments; equity is lower for the business
MCQ
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उत्तर
Debt carries higher financial risk because interest and repayment are fixed commitments. Equity has lower financial risk for the business because it lacks the same compulsory commitments.
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