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:

Selective Memory

A cognitive process where a person remembers some information while forgetting other info, often influenced by emotional factors.

Boredom

A state of feeling disinterested and unengaged, often resulting from a lack of stimulation or activity.

Touch-Based Communication

The use of physical touch as a non-verbal form of expressing feelings, conveying messages, or interacting with others.

Relationships

Refers to connections or associations between individuals or entities based on social, emotional, professional, or biological factors.