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Entrepreneurship MCQs

Relying primarily on debt financing is very dangerous for a company because ________.

Creditors can force a company into bankruptcy or take over company property

Creditors can sabotage the business by refusing to lend it money

Creditors can gain a majority share of the company and take it over

All of the above

None of the above

Answer

Correct Answer: Creditors can force a company into bankruptcy or take over company property

Explanation:

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