Question

In one to two sentences, describe one advantage and one disadvantage for a business when it receives a loan.(2 points)

Short Answer Rubric (2 points)
Points Awarded Criteria
2
The answer is very clear.

The answer is fully supported by details.

There may be a few errors in grammar, usage, or mechanics. Errors do not interfere with meaning.

1
The answer is somewhat clear.

Details are weak or not related.

There are some errors in grammar, usage, and mechanics. Errors interfere with meaning.

0
The question is not answered.

Answer 1

One advantage of a business receiving a loan is that it provides immediate capital for expansion or operational needs, enabling growth and increased revenue potential. Conversely, a disadvantage is the burden of debt repayment, which can strain cash flow and reduce financial flexibility, especially if business revenues fluctuate.