Which of These Is Not an Advantage of Using Borrowed

question 23

Multiple Choice

Which of these is not an advantage of using borrowed funds to finance a business?

• A)Interest on borrowings is tax deductible.
• B)Borrowing can be used to boost returns to owners, as long as the return on the funds exceeds the cost of interest.
• C)Lenders do not dilute ownership interest in the business.
• D)Interest on borrowing is a legal commitment that must be met.

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Definitions:

Caregiver Qualifications

The education, training, skills, and experience required for someone to effectively provide care to another individual.

National Day Care Study

A research project focused on evaluating the quality and outcomes of day care services across a nation.

Caregiver-Child Ratio

The proportion of caregivers to children in a particular setting, which influences the quality of care and attention each child receives.

Early Childhood Professionals

Educators and other specialists who work with young children, focusing on developmental, educational, and care needs from birth to eight years old.