Question

If Company A takes a higher level of financial risk than Company B, then Company A is likely to have __________ than Company B.

a higher debt ratio


a lower debt ratio


a greater ability to borrow


more financial flexibility

Answer 1

A. Would make the most sense because they are taking a “higher level financial risk” meaning they are putting more money down for something a little bit risks which means your getting rid of money… lmk if I’m wrong