Aardvark is a small pest-control business that has 30 employees. The company started business within the past year, and needs to make a decision on how best to make sure its finances are managed well as the company continues to grow its customer base and its business. Aardvark needs some short-term financing to meet a cash flow gap while it makes immediate capital expenditures. Which of the following, if true, would strengthen the case for the company using a credit card for this purpose?

Question

Quizplus · Accepted Answer

The fact that the company expects to be able to repay the money next month indicates that they will not need a long-term financing solution, making a credit card a more suitable option. Options A, D, and E are not related to the specific needs of Aardvark in this scenario. Option B weakens the case for using any type of financing solution since the company is uncertain about its ability to repay the funds.

Aardvark Is a Small Pest-Control Business That Has 30 Employees