Question

A nail salon is hoping to open a new location on the other side of town. An ideal space becomesavailable, but the rent is very high and the salon already has some debt from repairs after a minorearthquake. It is significantly more than comparable rent in the area. Should the nail salon take thespace even though it will require using credit since it much more expensive?
(1 point)
No, the business is better off waiting for a more affordable space.
No, the nail salon should only expand if it requires using no credit.
Yes, having the right location is more important than sticking to the budget.
Yes, the rents in the area will probably go up anyway, so there is no point in waiting.
A)
Antoine applied for a credit card. The bank offers him a very low line of credit and a high interest rate.He has some savings but wanted a card in case of emergencies. What should he do?
(1 point)
Take the card and use it whenever he wants.
Get the card if he can afford the monthly payments.
Take out another loan to build a stronger credit history.
Reconsider why he wants a credit card since it is not a good deal.

Answer 1

1) No, the business is better off waiting for a more affordable space.
Reason: Taking a much higher rent and more debt when already carrying repairs-related debt is financially risky; expansion should be affordable and sustainable.

2) Reconsider why he wants a credit card since it is not a good deal.
Reason: With savings and a low limit plus high interest, the card is a poor emergency option — he should decline or look for a better card rather than accept bad terms.