Slater Co. has an old, outdated manufacturing facility that needs extensive renovation and expansion. Slater does not have the cash available for this renovation/expansion, so it will most likely need which of the following?
A) to use trade credit
B) to obtain an unsecured loan
C) long-term financing
D) a short-term loan

Question

Quizplus · Accepted Answer

Renovation and expansion of a manufacturing facility requires a large amount of capital, which is typically not available through short-term loans or trade credit. While an unsecured loan may be an option, it may not provide Slater Co. with enough capital to cover the cost of the renovation/expansion. Long-term financing, such as a mortgage or bond issue, is the most appropriate option for this type of capital investment.

Slater Co Has an Old, Outdated Manufacturing Facility That Needs Extensive