You decide to start a business selling covers for smart phones in a mall kiosk. to buy inventory, you need to borrow some funds. why are you more likely to take out a bank loan than to issue bonds

Question

Business

Harold Farmer

3 July, 04:21

You decide to start a business selling covers for smart phones in a mall kiosk. to buy inventory, you need to borrow some funds. why are you more likely to take out a bank loan than to issue bonds

+2

Answers (1)

Know the Answer?

Janae Cunningham · Answer 1

The reason as to why it is most likely that the individual will take out a bank loan than issue bonds because of the reason that a small business does not usually have a reputation in which is why that issue bonds is not applicable as there are not many people will buy their bonds and that it will take more time for it to raise compared from bank loans.