Choose all that apply. Which of the following would be considered good reasons for a business to borrow money?

Question

A. To pay off the owners home mortgage.
B. To purchase assets.
C. To buy back equity in the company.
D. To repay information sources of funds used before.

Answer 1

The following options would be considered good reasons for a business to borrow money:

B. To purchase assets.
C. To buy back equity in the company.
D. To repay informal sources of funds used before.

Option A (To pay off the owner's home mortgage) is generally not considered a valid reason for a business to borrow money, as it pertains to personal financial obligations rather than business purposes.