Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Question
Chapter 10, Problem 17AA
To determine
To state: Appropriate type of financing.
Expert Solution & Answer
Answer to Problem 17AA
Types of financing includes short term, long term or intermediate financing.
Explanation of Solution
| Expansion | Type | Explanation |
| Buying computers | Intermediate | It is a moderate amount i.e. not so large not so small, therefore, intermediate is appropriate. |
| Purchasing raw materials | Short-term | Once the production is done and the goods are ready for sale, it is usually paid off. |
| Buying a machinery | Long term | It is a heavy capital expenditure and will require more time to pay off completely therefore, long term is required. |
| Purchasing a land for setting up a new factory | Long term | It is a heavy capital expenditure and will require more time to pay off completely therefore, long term is required. |
| Opening a new outlet | Intermediate | It is a moderate amount i.e. not so large not so small, therefore, intermediate is appropriate. |
Economics Concept Introduction
Introduction: Financing is the procedure through which the companies are granted money to help them use such money in carrying out their businesses.
Chapter 10 Solutions
Economics Today and Tomorrow, Student Edition
Ch. 10.1 - Prob. 1RCh. 10.1 - Prob. 2RCh. 10.1 - Prob. 3RCh. 10.1 - Prob. 4RCh. 10.1 - Prob. 5RCh. 10.2 - Prob. 1RCh. 10.2 - Prob. 2RCh. 10.2 - Prob. 3RCh. 10.2 - Prob. 4RCh. 10.3 - Prob. 1R
Ch. 10.3 - Prob. 2RCh. 10.3 - Prob. 3RCh. 10.3 - Prob. 4RCh. 10.3 - Prob. 5RCh. 10 - Prob. 1AACh. 10 - Prob. 2AACh. 10 - Prob. 3AACh. 10 - Prob. 4AACh. 10 - Prob. 5AACh. 10 - Prob. 6AACh. 10 - Prob. 7AACh. 10 - Prob. 8AACh. 10 - Prob. 9AACh. 10 - Prob. 10AACh. 10 - Prob. 11AACh. 10 - Prob. 12AACh. 10 - Prob. 13AACh. 10 - Prob. 14AACh. 10 - Prob. 15AACh. 10 - Prob. 16AACh. 10 - Prob. 17AACh. 10 - Prob. 18AACh. 10 - Prob. 19AACh. 10 - Prob. 20AACh. 10 - Prob. 21AACh. 10 - Prob. 22AA
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