Before seeking financing, Mattel Toy Company needs to be sure that obtaining a long-term loan to expand production facilities will allow it to increase production, sales, and gain market share from Hasbro. Which key consideration for choosing a form of financing does this example illustrate?
A) external factors
B) term of financing
C) amount of financing
D) cost of financing

Question

Quizplus · Accepted Answer

The example illustrates the key consideration of external factors, as Mattel Toy Company needs to consider the impact of obtaining a long-term loan on its production, sales, and market share relative to Hasbro.

Before Seeking Financing, Mattel Toy Company Needs to Be Sure