Marcus Works for a Gaming Company That Is Developing a New

Multiple Choice

Marcus works for a gaming company that is developing a new online car racing game. Since developing new software is expensive, the company takes a loan. What is true regarding this scenario?

A) As long as this company develops a fun game, regardless of costs versus returns, the company will profit.
B) The returns from this project must cover the costs of operating the project but also the cost of capital used to finance the project.
C) Since the finance company pays for the operating expenses, the gaming company only needs the returns from the project to cover the interest expenses for the loan.
D) Since this type of business loan is interest-free, the returns from this project only need to cover the gaming company's operating expenses.
E) Even if this company can't cover all of its costs, it will eventually succeed because the market is strong.