Loans from commercial banks is a flexible source of finance.
Options:
A .  
True
B .  
False
C .  
not important when determining dividends
D .  
the cumulative earnings of the company after dividends
Answer: Option A : A
True. Loans from commercial banks is a flexible source of finance, as the loan amount can be increased according to business needs and can be repaid in advance when funds are not needed.
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