Question
As your business continues to expand, you decide to raise additional capital in case there is an economic downturn.You have reviewed your options and determine
As your business continues to expand, you decide to raise additional capital in case there is an economic downturn.You have reviewed your options and determine that debt financing is the best choice because it has a number of advantages that are particularly applicable for your company; however, you are mindful that there are some disadvantages as well. Categorize the list below as either advantages or disadvantages by dragging to the correct location.
a. The relationship ends once the debt is paid off. Select(Advantages Disadvantages) b. Money must be paid back within a pre-determined period of time. Select(Advantages Disadvantages) c. Interest is tax deductible. Select(Advantages Disadvantages) d. Cost and availability is dependent on external factors. Select(Advantages Disadvantages) e. Assets of business may be held as collateral. Select(Advantages Disadvantages) f. Both short and long-term options. Select(Advantages Disadvantages)
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