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In the fierce market competition, the owners of enterprise management, can effectively reduce the cost of capital for companies, enterprises with leverage. Business enterprise moderate debt has the best benefit an appropriate financial means. It not only meet the needs of business activities, moderate debt, still can rise to tax and financial leverage. But the excessive debt management will bring certain of fundraising risk, but also increased the financial risks and cannot repay the risk. Therefore, how to weigh the pros and cons, reasonable and wisdom to use debt, they become the enterprises before the decision makers.
Keywords: indebtedness, advantages and disadvantages, risk, financial leverage