Question

why was carrying so much debt a problem for toys ‘r’ us?
(1 point)
○ it forced them to move to smaller retail space.
○ managers were unaware of how much debt there was.
○ it could not afford adequate marketing due to the debt.
○ the interest payments were using up a substantial amount of revenue.

Explanation:

When a company has a large amount of debt, the interest payments on that debt can be significant. These interest payments are an expense for the company. If a substantial portion of a company's revenue is going towards paying interest on debt, it leaves less money for other important aspects like business expansion, innovation, or even maintaining day - to - day operations effectively.

Answer:

The interest payments were using up a substantial amount of revenue.