Payless Shoes finds that it does not have enough cash to purchase new sandals for the upcoming summer season. What type of arrangement would you recommend for purchasing the shoes?

Question

Quizplus · Accepted Answer

A short-term business loan would be the best option in this situation as it would provide Payless Shoes with the necessary cash to purchase the new sandals for the upcoming summer season. Collateral and long-term loans may not be feasible options for a short-term financial need, while selling corporate bonds and issuing stock may take too long to generate the needed funds.

Payless Shoes Finds That It Does Not Have Enough Cash