Camilla Calls a Meeting with the Other Major Stock Holders

Multiple Choice

Camilla calls a meeting with the other major stock holders of the company who make up the board of directors.Camilla wants to finance a marketing strategy by securing a long-term note with the company's bank as opposed to selling more shares.What will this do to the financial risk of the company?

A) The financial risk will be lower.
B) The financial risk will be higher.
C) The financial risk won't change.
D) Only the minority shareholders will bear the risk.