1. Scenario 9.3. Musa is the chief financial officer (CFO) of a retail farm supply company. He has been asked to consider different financing options for a new distribution center, which will involve a significant investment that will be used over a number of years.

Refer to Scenario 9.3. Musa wants to help reduce the tax burden on the company, but hes worried about potential restrictions that lenders may place on the way the company spends its money in the interim. Despite these concerns, he believes that ____________ is the best option for the company.

A. short-term financing

B. a revolving credit agreement

C. debt financing

D. equity financing

2. Sunils online distribution company sold one of its facilities last year, and Sunil has been tasked with making a recommendation on how to use the proceeds of the sale. The director of operations has indicated that they may need the money in about six months to purchase new machinery, so Sunil needs a safe way to hold onto the funds. Ideally, he would find a way to save the money while still earning a small return. How should he hold the funds?

A. As cash

B. A money market mutual fund

C. In U.S. Treasury bills

D. In inventories

3.Mo works as a landscape architect. He is the sole owner of his LLC, and he has to manage all accounts receivables. When he first started his business, he would agree to provide services for clients without doing any due diligence first. This led to some awkward situations where clients would agree to pay for services, but then they would later admit that they couldnt afford it. Mo should have spent time ________________ to help prevent this kind of situation.

A. establishing credit standards

B. setting credit terms

C. deciding on an appropriate collection policy

D. establishing the right capital structure