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QUESTION 30 Scenario: Jim is interested in beginning his own small business dealing with the repair and maintenance of household appliances. He has a talent

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QUESTION 30 Scenario: Jim is interested in beginning his own small business dealing with the repair and maintenance of household appliances. He has a talent for fixing these types of appliances and has been doing so as a sideline business for several years. He has acquired some of the needed tools; however, a sizeable investment will need to be made in tools and equipment in order for him to repair the appliances that will be brought to his shop for service. He would like part of his competitive advantage to be the capability to fix all appliances, not just one type. Jim has just one problem-a lack of funds. He comes to you for advice. In the scenario above, some of the primary features of using debt financing are all but which of the following? O It increases risk due to the possibility of insolvency. O Leverage can enable returns to be lessened. It allows a voice in management of the business. O It has to be repaid

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