MODULE 05 DISCUSSION – CHOOSING FINANCING

The company that you work for (as identified in Modules 1-4) is considering opening an additional facility in a nearby city. This is going to be a fairly costly venture, so your department has been asked to research financing options for this expansion. Securing a building will require long-term financing, and purchasing office furniture and a few computers would be accomplished with the help of short-term financing.

• Analyze the pros and cons of purchasing the building using bank financing compared to the pros and cons of renting. Provide a recommendation and explain your rationale. Analyze whether the office furniture should be purchased using the company credit card or whether it should be leased. Provide a recommendation and explain your rationale.

Response Post Requirements: Choose another student’s post, and recommend at least one additional long-term and one additional short-term financing option. They must be different options from the ones you wrote about in your initial post. Be sure to explain why you are recommending each of those options for that student.