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Spark Inc. (SI) , a multinational corporation, had reported large losses in the previous financial year. To overcome these losses, the company planned to take the instrumental approach to corporate management. Which of the following best illustrates this approach?
Non-interest-bearing Notes
Debt instruments that do not accrue interest over time, thus repaid at their face value.
Incremental Borrowing Rate
The interest rate a lessee would have to pay to borrow over a similar term the funds necessary to purchase or lease an asset.
Non-interest-bearing Note
A promissory note in which no interest is earned or paid over the life of the note, with the borrower repaying only the face value of the note.
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