A firm's ability to borrow at a lower rate Option 1: Decreases its capacity to employ higher debt Option 2: Increases its capacity to employ higher debt Option 3: Can or employ any amount of debt available from market Option 4: Unable to raise any amount of debt

The answer is 'Increases its capacity to employ higher debt'. View full solution:

CUET Business Studies - A firm's ability to borrow at a lower rate | PYQs + Solutions

CUET Business Studies 2022 15 July Shift 2

Business Studies

Easy

Decreases its capacity to employ higher debt

Increases its capacity to employ higher debt

Can or employ any amount of debt available from market

Unable to raise any amount of debt

✅ Correct Option: 2