Glenda is trying to decide between the use of debt and the use of equity to finance her young business. She should remember that:
A. her return on assets will be less if she uses debt financing.
B. using other people's money to finance one's business is seldom a good idea.
C. the lender will have partial control of the business.
D. debt must be repaid even if the company does not make a profit.
Answer: D
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