The options for the blanks are as follows;

1 Convenience

2 debt, convertible security and equity

3full access to assets without ownership

4security or unsecured

5 accounts receivable, inventory and long term assets

R KS Refer to figure 6-11 Decision tree and the financing decision in your text for the following questions and select the right answer. Long-term financing decisions include Debt can be either which can affect the interest rate on the debt. Some examples of security could be such as equipment and buildings. Short-term financing decisions are heavily influenced by cost. However, a smaller business may make a decision based on over cost as they may not have the expertise or access to the markets for some of the options listed in this decision tree. A neat thing about a lease decision is that it is a nice packaged product that gives a business of the assets. In some cases, this will reduce the assets on the balance sheet as well as the loan liability that you would typically see in an asset purchase