Which of the following is a reason for not increasing a business's financial leverage?

a. It can have a positive impact on the business's return on equity.

b. The business can be grown with someone else's money.

c. The interest on debt has a deductible nature.

d. It may lead to an inability to pay the interest on the debt.

e. It decreases a business's overall risk.

Trade credit involves:

a. no explicit obligation or expectation, on the part of the investors, to be repaid their investment.

b. purchasing supplies or equipment through financing made available by vendors

c. pledging some assets-such as a home, real estate, machinery, and plant-as collateral.

d. guaranteeing a portion of the loan to partners that include private lenders, microlending institutions, and community development organizations.

e. business plan competitions hosted by colleges and universities or small business associations.