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:

Astronomical Theory

A scientific theory or set of principles that aims to explain phenomena observed in astronomy, such as the motions of celestial bodies or the evolution of the universe.

Sunset

The time in the evening when the sun disappears below the horizon.

Leibniz

A German polymath and philosopher best known for his contributions to metaphysics, mathematics, and the development of the calculus independently of Isaac Newton.

Locke

An English philosopher and physician, widely regarded as one of the most influential of Enlightenment thinkers, particularly known for his theories of mind and personal identity.