Which of the Following Statements Is FALSE in Regard to Borrowing

question 195

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 these is false.

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Definitions:

Fade From View

The process or act of something gradually becoming less visible or recognized over time.

Medial Forebrain Bundle

A complex neural pathway in the brain that plays a key role in the regulation of pleasure and reward, as well as various other behaviors.

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a neurotransmitter involved in reward, motivation, memory, attention, and even regulating body movements.

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The process by which extra neurons and synaptic connections are eliminated in order to increase the efficiency of neuronal transmissions.