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?
Responses
Involving a bank will likely make borrowing more expensive.
The types of saving accounts a bank offers.
Banks will likely offer disappointingly low interest rates
Changes in the stock market
The company's credit rating and financial stability will impact the terms of any loans or financing obtained.
Consider the potential impact on cash flow and the company's ability to repay any debt.
Exploring alternative funding options such as equity financing or strategic partnerships.
The company's long-term financial goals and risk tolerance should be taken into account when choosing funding options.