Which of the Following Statements Is FALSE in Regard to Borrowing

question 154

Multiple Choice

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

• A) In general, the greater the risk associated with a loan the greater the interest rate charge will be.
• B) Interest expense on a loan may impact prices and profits.
• C) Borrowing money is usually less expensive than reinvesting cash generated from operations.
• D) A company with a successful marketing strategy has its own internal source of funds--profits.
• E) None of the above is false.

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Definitions:

Motor Stimulus

A physical or psychological factor that induces a motor response or activity in an organism.

Imprinting

A kind of swift and irreversible learning that occurs at a particular life stage, usually early in life, leading to a long-lasting behavioral response to a specific individual or object.

Coordinate Movements

The ability to use different parts of the body together smoothly and efficiently in physical actions.

Classical Conditioning

Classical conditioning is a learning process wherein a neutral stimulus becomes associated with a meaningful stimulus, leading to an automatic response.