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:

Dissatisfaction

A feeling of unhappiness or discontentment resulting from unmet expectations or experiences in various aspects of life or work.

Kent State University

A public research university located in Kent, Ohio, known for the 1970 shootings where four students were killed by National Guard members during a protest.

Campus Protest

Demonstrations or actions taken by students or faculty members within a university or college setting, often to express opposition against policies, actions, or societal issues.

American Troops

Refers to soldiers from the United States armed forces, who have been deployed in various conflicts around the globe to defend U.S. interests and support allied nations.