Assume that a business has the following totals on its balance sheet: Assets = $100,000 Liabilities = $40,000 This business now borrows $50,000 from the bank.

Discussion Questions: 1. How will the totals for assets and liabilities be affected by the loan? Explain thoroughly. 2. Is the borrowing a good idea for the business? Why or why not? Explain thoroughly. 3. How might the business use the $50,000? Explain thoroughly. 4. What other information would be useful to have before deciding to take out the loan? Explain thoroughly.