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