Correct Answer & Explanation
Option B
• 'Defray' means to provide money to pay (a cost or expense).
• The primary purpose of funds allocated to defray expenses is to cover those costs.
• 'Generate profit' is the outcome of successful business operations, not directly the purpose of defraying expenses.
• 'Create debt' is the opposite of defraying expenses, which aims to settle them.
• 'Reduce income' is not the purpose; rather, it's about managing outgoings.
• Therefore, the primary purpose is to 'cover costs'.