NO.PZ2021091701000023
问题如下:
Which of these statements is most accurate with respect to the use of debt
by a start-up fashion retailer with negative cash flow and uncertain revenue
prospects?
选项:
A.Debt financing will be unavailable or very costly.
The company will prefer to use equity rather than debt given its uncertain
cash flow outlook.
Both A and B.
解释:
C is correct. For a start-up company of this nature, debt financing is likely to
be unattractive to lenders—and therefore very expensive or difficult to obtain.
Debt financing is also unappealing to the company, because it commits the
company to interest and principal payments that might be difficult to manage
given its uncertain cash flow outlook.