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:

Pinna

The visible part of the ear that is outside the head, its primary function is to capture sound waves and funnel them into the ear canal.

Auditory Ossicles

Three small bones in the middle ear (the malleus, incus, and stapes) that transmit sound vibrations from the ear drum to the inner ear.

Vestibule

An entrance or enclosed area at the entrance of a building, or in the context of anatomy, a space or cavity at the beginning of a canal.

Semicircular Canals

Three fluid-filled bony channels in the inner ear, playing a critical role in maintaining balance and spatial orientation.