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)

Changes in the stock market.

Banks will likely offer disappointingly low interest rates.

The types of saving accounts a bank offers.

Involving a bank will likely make borrowing more expensive.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The directors should keep in mind the cost of borrowing, the terms and conditions of different financing options, the company's ability to repay the debt, and the impact on the company's financial health and sustainability. They should also consider alternative sources of funding such as equity financing, venture capital, or government grants. Additionally, they should assess the potential risks and benefits of different funding options and consult with financial advisors to make informed decisions.