Which three of the following are advantages of bank borrowing, when compared with selling bonds?

Question

Quizplus · Accepted Answer

A) A bank can be more flexible in altering conditions and repayment schedules, allowing the firm to adjust to changing economic circumstances.
B) A bank loan can be arranged relatively quickly, allowing the firm to obtain financing without the delay associated with selling bonds.
C) Administrative and legal costs are typically lower with bank borrowing than with bond issuance, which can make bank borrowing a more cost-effective option for firms. 
D) The rate of interest for bank loans tends to be higher than for bonds, so this is not an advantage of bank borrowing when compared with selling bonds.

Which Three of the Following Are Advantages of Bank Borrowing