Rollins,Inc. Mat Rollins,CEO of Rollins,Inc.,decided that upon his retirement,he would elect his son Chris to become the new CEO.Mat thought it would be a good idea to have Chris shadow him at work to understand the roles and responsibilities of a CEO.Chris shadowed his father for months in order to learn every aspect of the business.Mat knew that the best way for Chris to learn was to actually perform some of the tasks he did on a daily basis,rather than simply describe them.The company generally focused on short-term financing,and Mat felt that it was important for Chris to understand the different types of financing.Chris learned about the type of bonds that the company usually offered to raise capital.These bonds allow the purchasers of the bond to keep them until maturity.Chris also learned the process of obtaining bonds and the various types of long-term financing methods.Job shadowing was indeed a worthwhile experience for Chris.
-Refer to Rollins,Inc.If Chris were to offer advice to a client about obtaining a loan,which of the following would be the first step?
A) Get to know potential lenders before requesting debt financing.
B) Have the financial manager meet with the loan officer.
C) Fill out a loan application.
D) Show current business plan.
E) Have your CPA prepare financial statements.

Question

Quizplus · Accepted Answer

Building a relationship with potential lenders is crucial as it can facilitate better communication and understanding, which can be beneficial when requesting debt financing.