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Why debt is risky compared to …

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Why debt is risky compared to equity as debt is tax deductable expenditure whereas equity is not?

Posted by Monika Prakash 6 years, 9 months ago

CBSE > Class 12 > Business Studies

2 answers

Sonal Sachdeva 6 years, 9 months ago

because it increases the financial risk

Sna Sarangi 6 years, 9 months ago

Debt is risky bcz it is a legal obligation of a business to pay regular interest whereas this is not a legal obligation to pay in equity..

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