Post Utme Nile University 2022 Commerce Question 10

Practice objective / multiple choice question 10 from the 2022 Post Utme Nile University Commerce examination.

Post Utme Nile University 2022 Commerce Objective / Multiple Choice

Question 10 POST_UTME_NILE_UNIVERSITY • 2022 • COMMERCE • objective

A company's financial statements show that it has a high level of debt and a low level of equity. Which of the following is a potential risk associated with this financial situation?

Answer Options

A. High Interest Rates

B. Low Profit Margins

Correct Answer C. High Risk of Bankruptcy

D. Low Return on Investment

Correct Answer

Correct Option:

High Risk of Bankruptcy

About This Question

This is Post Utme Nile University 2022 Commerce Question 10. It is one of the objective questions from the 2022 Post Utme Nile University Commerce examination.

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