Some companies solve their financing problem by borrowing on the strength of their current assets; others solve it by selling their current assets.

Question

Quizplus · Accepted Answer

Companies can choose to borrow money using their current assets as collateral, or they can sell their current assets to generate cash flow. Both options can be used to solve financing problems, depending on the specific circumstances and goals of the company.

Some Companies Solve Their Financing Problem by Borrowing on the Strength