The Risk Associated with Borrowing a High Percentage of the Capital

question 2

True/False

The risk associated with borrowing a high percentage of the capital needed to acquire commercial real estate is that,if there is default in payment due under the loan at any time and the company is unable to negotiate more favourable terms with the lender,the ownership and possession of the property can be completely lost.

---

Definitions:

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings across eight stages from infancy to adulthood.

Puberty

The period of physical development during which sexual reproduction first becomes possible.

Motor Development

The progression of muscular coordination and the development of fine and gross motor skills from infancy through adulthood.

Brain Maturation

The process of growth and development of the brain, which continues into young adulthood.