Aiping fulfilled her ambition to create artisanal bread and pastries by opening a bakery a year ago. Although sales have been on the rise, she is just meeting her operating expenses, which for a business of this type in its year is considered a success. Aiping wants to purchase a second commercial banking oven that will cost $45,000 and has arranged to meet with her banker to discuss a loan. First, Aiping approached Sigurd, a long-time friend, and asked him to help her with the loan from the bank. Need some dough, eh? Let me think about it! Sigurd replied.

a. Explain to Aiping the different ways in which Sigurd might help with the bank loan.

b. Identify and explain the issues Sigurd should be aware of before helping Aiping with the bank loan.

c. Identify the concerns the bank might have with providing a loan to Aiping and make a recommendation to the bank as to the best method to address these concerns.