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Question
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 peoples money to finance ones 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
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