Which of the Following Observations Concerning Debt Financing Is NOT

question 150

Multiple Choice

Which of the following observations concerning debt financing is NOT TRUE?

• A) The cost of borrowing money can be a real financial burden.
• B) The impact of interest charges on prices is negligible.
• C) Most commercial banks are conservative.
• D) The greater the risk that the lender takes on, the greater the interest rate charge will be.
• E) It might involve a loan from a commercial bank or the use of corporate bonds.

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Definitions:

Bus Topology

In multiplexing, it means that no single controller networked to the data bus has more priority than another; in other words, no ECM/ECU is in charge.

Data Bus

A communication system within a computer or electronic device used for transmitting data between components.

Engine Management ECM

Engine Management Electronic Control Module, a central part of the engine management system that processes information from engine sensors to adjust fuel delivery, ignition timing, and other engine parameters for optimum performance and emissions.

Automotive

Pertaining to the design, production, and operation of motor vehicles.