Which of the Following Statements Is FALSE in Regard to Borrowing

question 92

Multiple Choice

Which of the following statements is FALSE in regard to borrowing money?

• A) Interest expense on a loan may impact prices and profits.
• B) A company with a successful marketing strategy has its own internal source of fund--profits.
• C) Institutions that loan money are usually more willing to take a risk than are investors who buy stock.
• D) The firm may be able to sell stock to its own employees.
• E) None of the above is false.

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Definitions:

Operations

Activities involved in the day-to-day running of a business for producing and delivering products or services to customers.

Product Development Strategy

A systematic approach to creating new products or improving existing ones, aligning product designs with market demands and business goals.

Customer Needs

The requirements and desires of consumers that businesses aim to meet through their products and services.

Interoperation Scope

The extent and manner in which different systems, organizations, or components can work together seamlessly to achieve a common objective.