Which of the Following Statements Is FALSE in Regard to Borrowing

question 85

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 these is false.

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Definitions:

Joint Benefit

The advantages or profits derived from a venture, project, or activity that are shared by all participating parties.

Department

A specialized functional area within an organization, focused on a specific area of activity or responsibility.

Selling Department

A division within a company responsible for managing sales activities and strategies to sell products or services.

Profit Center

A branch or division of a company that is responsible for generating its own revenue and profit.