Barbara feels that the economy is on the verge of a turn-around. She has an opportunity to expand her business, and, if she is right about the economy, this will substantially grow revenue. She will need an additional $50,000 for this expansion. What is the most suitable recommendation for Barbara and John as it pertains to business expansion?
A. Borrow $50,000 from a home equity line of credit
B. Take a $50,000 loan from their 401(k)s
C. Bring in a qualified partner who is able to commit the capital
D. Use part of the cash reserve to fund a portion of the expansion
Answer:C
Barbara feels that the economy is on the verge of a turn-around. She has an opportunity to expand her business, and, if she is right about the economy, this will substantially grow revenue. She will need an additional $50,000 for this expansion. What is the most suitable recommendation for Barbara and John as it pertains to business expansion?
A. Borrow $50,000 from a home equity line of credit B. Take a $50,000 loan from their 401(k)s C. Bring in a qualified partner who is able to commit the capital D. Use part of the cash reserve to fund a portion of the expansion