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Ray Of Light [21]
3 years ago
11

Name at least three consequences of excessive debt.

Social Studies
1 answer:
castortr0y [4]3 years ago
7 0
<span>Bankruptcy
</span>

Bankruptcy is likely the most extreme danger of excessive business debt. In a sole proprietorship, your business finances are not separate from your individual finances, meaning you could face personal bankruptcy. For other common business set-ups, if you cannot meet the repayment requirements of your lenders, they may eventually force you into bankruptcy. This typically means the end of your business, or at least the end of your ownership. Your business assets may be seized to allow creditors to recover some of their money.

<span>
Limited Flexibility

</span>High debt leverage is less severe than bankruptcy but often a signal of impending doom. This means you have too much debt and your debt ratios show difficulty keeping up with your short-term and long-term debt obligations. This makes you susceptible to late fees, default and eventually bankruptcy. It also makes your business unattractive to prospective lenders or creditors. This gives you limited flexibility to find new financing or to buy new equipment or supplies on credit. New investors may also have concerns about your high debt.
<span>Poor Profits
</span><span>Even if your business stays afloat, too much debt leverage makes profitability difficult to achieve. Your business has fixed monthly expenses for building costs and labor. You also have variable costs of production or operations and sales. When you add high monthly principal and interest payments, bringing in enough revenue to make substantial profits becomes unlikely. Plus, if you cannot pay down debt quickly, you carry it longer and pay more in interest over time. Without profit or funding sources, you also cannot expand or grow your business.</span>
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Answer:

While Fred is telling a story to Priya at lunch time, he notices that she looks bored, so he quickly livens up his story with a humorous twist and she begins laughing. As indicated by the transactive model of communication, this demonstrates that communication is a simultaneous process.

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According to the transactional model, which differs from the linear model, communication is a simultaneous process where some participants, known as communicators, interact in a specific environment, which corresponds to more than just physical location, including life and cultural experiences. In the example, it is evident how there is a simultaneous change in the communication between Fred and Priya.

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Two main assumptions of functional theory and conflict theory are Social stability, social integration and social class and gender.

<h3>What are the major assumptions of functional and conflict theories?</h3>

  1. Functionalism: Social stability is key to have a strong society, and adequate socialization and social integration are necessary to achieve social stability.
  2. Conflict theory: Society is full of pervasive inequality based on social class, gender, and other factors.

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The theory, functional theory for instance, can be used to understand it by knowing that Society’s social institutions perform important functions to help ensure social stability. The essence of such show is to bring about social stability

Similarly, Conflict theory can help understand that far-reaching social change is needed to reduce or eliminate social inequality and to create an egalitarian society.

Therefore, while functional theory is used to understand the show for social stability, the other theory, conflict theory, us used to bring about social equality.

learn more about social equality: brainly.com/question/24131981

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