Financial capital refers to the costs a business incurs when its expenses are greater than its revenues funds a firm uses to acquire its assets and finance its operations money that a business earns in sales, minus the expenses returns that a firm pays its owners for their investments in the company Question 6 cbc.instructure.com Which of the following is a disadvantage of debt financing? It does not yield any tax benefits. It forgoes the opportunity to use financial leverage. It requires firms to make fixed payments. It requires firms to sell stock to new investors to acquire additional funds. Question 7 True 4 pts 4 pts Financial diversification is a strategy of investing in a wide variety of securities in order to reduce risk