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.

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Definitions:

Grand Jury

A legal body empowered to conduct official proceedings to investigate potential criminal conduct and determine whether criminal charges should be brought.

Indictment

A formal charge or accusation of a serious crime, issued by a grand jury or by other legal authority.

Criminal Suit

Legal proceedings initiated by the state against an individual or entity accused of committing a criminal act.

Burden Of Proof

The obligation to present evidence to support one's claim or defense in a legal proceeding.