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 these are true.

Question

Quizplus · Accepted Answer

All of these options are true. When obtaining additional capital through loans, interest expense will impact the firm's prices and profits. A successful marketing strategy can generate profits, which can be used as an internal source of funds. Institutions that loan money are often cautious about taking risks, and the firm may choose to sell stock to its own employees to raise additional capital. Therefore, all options are important to consider when a firm needs to obtain additional capital for its marketing plan.

If a Marketing Plan Requires That the Firm Obtain Additional