This risk of debt?
2007-10-30 11:21 pm
why any company has not borrowed as much as it can crazy ? what are the disadvantages and advantages of having big debt ?
回答 (4)
2007-10-31 12:55 am
✔ 最佳答案
Advantage:More money to use to make money with.
Your profit in $$$ can go way up.
Disadvantage:
Interest eats up profits.
Your profit margin will go way down.
2007-10-31 3:21 am
Too much debt can put you out of business, especially if rates change, or you have an unexpected downturn in your business. There are no advantages, other than establishing good credit.
2007-10-31 12:51 am
Interest on debt, for a company, is tax deductible and it inflates the return on equity
2007-10-30 11:30 pm
high interest rates when you have lots of debts. You become a credit risk since you cant possibly pay all of them as far as they are concerned. Have more money than debt and that way you wont have to kill yourself paying everyone every month and not having any money for fun.
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