Question

Which of these is not an advantage of using borrowed funds to finance a business? a. Lenders do not dilute ownership interest in the business.

b. Interest on borrowings is tax deductible. c. Interest on borrowing is a legal commitment that must be met.

d. Borrowing can be used to boost returns to owners, as long as the return on the funds exceeds the cost of interest.​

Answer 1

Answer:

|I{•------» These are ADVANTAGES AND DISADVANTAGES of borrowing funds to finance a business «------•}I|

DISADVANTAGES:-

C) interest on borrowing is a legal commitment that must be met.

D) borrowing borrowing can be used to boost the returns on the funds exceeds the cost of interest.

ADVANTAGES:-

A) lenders do not delete ownership interest in the business

B) interest on borrowing is tax deductible.