Which of the Following Statements Is FALSE in Regard to Borrowing

Multiple Choice

Which of the following statements is FALSE in regard to borrowing money?

A) In general, the greater the risk associated with a loan the greater the interest rate charge will be.
B) Interest expense on a loan may impact prices and profits.
C) Borrowing money is usually less expensive than reinvesting cash generated from operations.
D) A company with a successful marketing strategy has its own internal source of funds--profits.
E) None of the above is false.