A corporation is looking to take advantage of market conditions and begin expanding as soon as possible. To do so, the company requires cash to purchase new buildings, machinery, and other capital goods. What should the directors keep in mind as they consider the type of funding to pursue?(1 point)

Question

A corporation is looking to take advantage of market conditions and begin expanding as soon as possible. To do so, the company requires cash to purchase new buildings, machinery, and other capital goods. What should the directors keep in mind as they consider the type of funding to pursue?(1 point)

Responses

Banks will likely offer disappointingly low interest rates.
Banks will likely offer disappointingly low interest rates.

Involving a bank will likely make borrowing more expensive.
Involving a bank will likely make borrowing more expensive.

The types of saving accounts a bank offers.
The types of saving accounts a bank offers.

Changes in the stock market.
Changes in the stock market.
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Answer 1

The potential impact on cash flow and financial flexibility when considering the type of funding to pursue is a critical consideration for the directors. They should also consider the terms and conditions of the funding options, including interest rates, repayment schedules, and collateral requirements. Additionally, the directors should evaluate the company's overall financial position and risk tolerance before making a decision on the type of funding to pursue.