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Businesses or companies can fall prey to default if they are not able to keep up with their debt obligations. Defaults will lead to a lower credit rating for the company, which in turn reduces its chances of getting credit in the future and may result in having to pay higher interest on existing debts as well as any new obligations. From an investor's point of view, they would want to invest in a company if it is capable of handling its financial obligations, can grow quickly, and is able to man
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