If a marketing plan requires that the firm obtain additional capital, a manager should remember that:
A) Interest expense on a loan may impact prices and profits.
B) A company with a successful marketing strategy has its own internal source of funds--profits.
C) Institutions that loan money are usually even less willing to take a risk than are investors who buy stock.
D) The firm may be able to sell stock to its own employees.
E) All of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true: interest expenses can affect pricing and profits, profits can be an internal source of funds, lenders are typically more risk-averse than stock investors, and firms can sell stock to employees.

If a Marketing Plan Requires That the Firm Obtain Additional