Which of the Following Statements Is FALSE in Regard to Borrowing

question 85

Multiple Choice

Which of the following statements is FALSE in regard to borrowing money?

• A) Interest expense on a loan may impact prices and profits.
• B) A company with a successful marketing strategy has its own internal source of fund-profits.
• C) Institutions that loan money are usually more willing to take a risk than are investors who buy stock.
• D) The firm may be able to sell stock to its own employees.
• E) None of these is false.