When corporations borrow money, they have to pay interest and that:
A) makes them more efficient
B) forces better management practices
C) reduces profit
D) increases the value of their stock
E) increases CEO remuneration

Question

Quizplus · Accepted Answer

When corporations borrow money, they incur interest expenses, which reduce their overall profit as these expenses are deducted from their earnings.

When Corporations Borrow Money, They Have to Pay Interest and That