题目
Which of these statements is most accurate with respect to the use of debt by a start-up fashion retailer with negative cash flow and uncertain revenue prospects?
选项
A.Debt financing will be unavailable or very costly.
B.The company will prefer to use equity rather than debt given its uncertain cash flow outlook.
C.Both A and B.
答案
C
解析
C is correct. For a start-up company of this nature, debt financing islikely to be unattractive to lenders—and therefore very expensive or difficult to obtain. Debt financing is also unappealing to thecompany, because it commits thecompany to interest and principal paymentsthat might be difficult to managegiven its uncertain cash flow outlook.C是正确的。对于这种性质的初创公司，债务融资可能对贷款人没有吸引力，因此非常昂贵或难以获得。债务融资对该公司也不具吸引力，因为鉴于其不确定的现金流前景，债务融资使该公司承担可能难以管理的利息和本金支付。