Which of the following statements is FALSE in regard to borrowing money?
A. In general, the greater the risk associated with a loan the greater the interest rate charge will be.
B. Interest expense on a loan may impact prices and profits.
C. Borrowing money is usually less expensive than reinvesting cash generated from operations.
D. A company with a successful marketing strategy has its own internal source of funds—profits.
E. None of these is false.
Answer: C