Which of the following statements is FALSE in regard to borrowing money?
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 fund-profits.
C) Institutions that loan money are usually more 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) None of these is false.

Question

Quizplus · Accepted Answer

Institutions that loan money, such as banks, are generally more risk-averse compared to investors who buy stock. Investors often seek higher returns and are therefore willing to take on more risk.

Which of the Following Statements Is FALSE in Regard to Borrowing