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:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.