What is benefits and problems associated with high gearing

1.	What is benefits and problems associated with high gearing
Answer» ong>Explanation: *Benefits of gearing* Invest more money for potentially higher returns. Improve RISK management by diversifying your investments. Take advantage of potential tax deductions. *Problems* of *gearing* A high gearing ratio is indicative of a great DEAL of leverage, where a company is using debt to pay for its continuing operations. In a BUSINESS downturn, such companies may have trouble meeting their debt repayment schedules, and could risk bankruptcy. please MARK it as BRAINLIEST

Answer»

ong>Explanation:

Benefits of gearing

Invest more money for potentially higher returns. Improve RISK management by diversifying your investments. Take advantage of potential tax deductions.

Problems of gearing

A high gearing ratio is indicative of a great DEAL of leverage, where a company is using debt to pay for its continuing operations. In a BUSINESS downturn, such companies may have trouble meeting their debt repayment schedules, and could risk bankruptcy.

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