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How do borrowed funds put a lot of burden on business? - Business Studies

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Question

How do borrowed funds put a lot of burden on business?

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Solution

Regardless of whether they turn a profit or a loss, businesses are required to pay an established rate of interest. 

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Chapter 18: Sources of Business Finance - EXERCISES [Page 268]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 18 Sources of Business Finance
EXERCISES | Q I. C. 1. | Page 268
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