Borrowing Money ______

question 44

Multiple Choice

Borrowing money ______.

• A) creates leverage
• B) increases financial flexibility
• C) decreases risk to shareholders
• D) decreases expected returns to shareholders due to interest payments

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Definitions:

Openly

In a manner that is not secretive or hidden; conducting actions in a visible and public way, often implying transparency or honesty.

Continuously

Occurring without interruption or cessation; ongoing.

Adverse

Unfavorable or harmful conditions or circumstances that can negatively affect or pose challenges to individuals or entities.

Necessity

A term that can refer to a state of being required or indispensable, or, in legal terms, a defense that asserts an act was done out of a need to prevent a greater harm.