Slater Co. has very old computers and manufacturing equipment and knows it needs to upgrade them or risk losing much of its business. Slater does not have the money to purchase the computers, so it will most likely need
A) a short-term loan.
B) to keep using the old computers.
C) to deduct the cost from employees' salaries.
D) long-term financing.
E) to use increased cash flow from sales.

Question

Quizplus · Accepted Answer

Long-term financing would enable Slater Co. to make a significant investment in upgrading its equipment and computers. This type of financing typically has a longer repayment period, and may be used to purchase expensive assets such as machinery or equipment. This would be the best option as it allows Slater Co. to make a big investment with a manageable repayment schedule.

Slater Co Has Very Old Computers and Manufacturing Equipment and Knows