Which of the Following Is True

question 60

Multiple Choice

Which of the following is true?

• A)You should use all your liquid assets to pay off loans when the return on the investments is high.
• B)Paying off loans is appropriate when the loan interest rate is high and you have enough liquidity.
• C)Paying off loans is wise whenever the loan rate is lower than what you expect to earn on investments.
• D)Loan payments will not restrict your cash flow but may prevent you from achieving financial goals.

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Definitions:

Factory Overhead

All the costs associated with operating a factory that are not directly tied to specific units of production, such as utilities, maintenance, and salaries of non-production staff.