Suppose there are two companies, both are loss-making companies: one company took on debt, while the other company hasn’t taken any debt. Why?

There can be various reasons why one loss-making company may choose to take debt while the other may not. Some possible reasons could be: Risk tolerance: The company that has taken debt may have a higher risk tolerance and may be willing to take on more debt to finance its operations or expansion plans, whereas…...

To get access, please buy CA Interview Question Bank
Scroll to Top