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:

Appellate Jurisdiction

The authority of a higher court to review and amend the decision of a lower court.

De Novo Review

De Novo Review is a form of appeal in which the reviewing court considers the matter anew, as if it had not been heard before and no decision previously made.

Clearly Erroneous

A standard of review for an obvious mistake in judgment or procedure.

Cross-examination

A stage in a legal trial where one party questions a witness called by the opposing party to challenge the testimony given.