Home › CBSE Class 11 (Commerce) › Business Studies › Sources of Business Finance › Borrowed funds carry what kind of burden on the …
Borrowed funds carry what kind of burden on the business?
AFixed interest payments
BFreedom from repayment
CVoting rights for lenders
DProfit sharing by lenders
Answer & Solution
Correct answer: A. Fixed interest payments
Borrowers pay a fixed rate of interest even when earnings are low.
Related questions
Which is true of the choice of a source of funds?Short-term financing mostly funds which kind of asset?Besides finance, development institutions also provide what?Financial institutions mainly meet which type of requirements?Government financial institutions are also called what?Before sanctioning a loan, a commercial bank requires the borrower to do what?A bank loan does not need which formality?A merit of bank loans is that business secrecy is what?