Which of the following statements about borrowing money is FALSE?

A. The firm may be able to sell stock to its own employees.
B. Institutions that loan money are usually more willing to take a risk than are investors who buy stock.
C. A company with a successful marketing strategy has its own internal source of fund-profits.
D. Entrepreneurs often borrow money from family and friends.
E. The interest expense on a loan may impact prices and profits.


Answer: B

Business

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