The primary risk associated with long-term debt is the risk of ________.
A)raising money from investors
B)raising money from creditors
C)not being able to make the debt payments
D)positive financial leverage

Question

Quizplus · Accepted Answer

Long-term debt requires regular payments over an extended period of time. The primary risk associated with this type of debt is the possibility of not being able to make the payments, which can lead to default and potentially bankruptcy. Choices A, B, and D are not directly related to the risk associated with long-term debt.

The Primary Risk Associated with Long-Term Debt Is the Risk