marketing questions 60 & 61

Working capital: Pays for long-term investments in fixed assets. May be used to pay for new production facilities. Pays for short-term expenses. Is not needed on an ongoing basis. None of these. Generating capital by means of debt financing: Involves borrowing money, either from a bank loan or from the use of corporate bonds. Means that the firm borrowing the money will have to pay interest charges. May be worth it if the borrowed money is used to implement a marketing plan that earns a return greater than the cost of borrowing the money. Means that the firm will have to put up some of its assets as a loan guarantee. All of these