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

Changes in the stock market.
Changes in the stock market.

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.

GPT-4o mini · Answer

As the directors consider the type of funding to pursue for the corporation's expansion, they should keep in mind that:

Involving a bank will likely make borrowing more expensive.

This is relevant as it highlights the potential costs associated with bank financing, which could affect the overall financial strategy for the expansion. Understanding the terms and costs of borrowing will help the directors make informed decisions about the best funding options to pursue.