Multiple Choice
Which of these is not an advantage of using borrowed funds to finance a business?
A) Lenders do not dilute ownership interest in the business.
B) Interest on borrowing is a legal commitment that must be met.
C) Interest on borrowings is tax-deductible.
D) Borrowing can be used to boost returns to owners as long as the return on the funds exceeds the cost of interest.
Correct Answer:
Verified
Correct Answer:
Verified
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