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A Less-Established Company, or a Company with a High Debt

question 153

Multiple Choice

A less-established company, or a company with a high debt to equity ratio, would be considered a riskier investment to the lender. Which of the following principles attests to this axiom?


Definitions:

Demanding Stakeholders

Individuals or groups with an interest in a company's performance who have high expectations and requirements that can influence management decisions.

Urgency Attribute

A characteristic or quality related to the need for quick or immediate action.

Dangerous Stakeholders

Individuals or groups that can pose a risk to a project or business due to their influence or actions.

Power and Urgency

The combination of having the influence to drive actions and the necessity of prompt action due to compelling circumstances.

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