Discuss the methods of financing expansion


Response to the following problem:

Assume Susie Levitt and Katie Shea of City Slips plan on expanding their business to accommodate more product lines. They are considering financing their expansion in one of two ways:

(1) contributing more of their own funds to the business or

(2) borrowing the funds from a bank.

Required

Identify at least two issues that Susie and Katie should consider when trying to decide on the method for financing their expansion.

 

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Financial Accounting: Discuss the methods of financing expansion
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