1.Is it true that, as a firm increases its use of borrowing, the likelihood of default increases, thereby ?

increasing the risk of the firm鈥檚 debt? Explain.1.Is it true that, as a firm increases its use of borrowing, the likelihood of default increases, thereby ?
';increases its use of borrowing'; means that a company is already in debt and then keeps going back to get more in debt.





You cannot borrow your way to profitability.





So, the more your company needs to borrow, the less chance there is of your company surviving.





Too much debt is where the country is now. More debt won't help.





It is statistically proven that any company that increases debt has a better chance of going out of business.