Question ID:PT23 S3 Q2 Passage:Owners of deeply indebted and chronically unprofitable small businesses sometimes try to convince others to invest money in their companies.  Since the money thus acquired will inevitably be used to pay off debts, rather than to expand operations, this money will not stimulate sales growth in such companies.  Thus, most people are reluctant to make these investments.  Surprisingly, however, such investments often earn handsome returns in the very first year they are made. Stem:Which one of the following, if true, most helps to explain the surprising results of such investments? Correct Answer Choice:CChoice A:Investors usually choose to reinvest their returns on such investments. Choice B:Expanding production in such companies would usually require more funds than would paying off debts. Choice C:Paying off debts, by saving a company the money it would otherwise owe in interest, decreases the company's overall expenses and thereby increases its profits. Choice D:Banks are reluctant to lend money to any company that is already heavily in debt and chronically unprofitable. Choice E:If the sales of a company do not grow, there is usually little need to devote a large share of company resources to expanding production.