Problem
Review the opening feature of Chapter 2 dealing with Stitch Fix which can be found on page 45 off the textbook. Assume that Katrina Lake of Stitch Fix plans to expand her business to accommodate more product lines. She is considering financing expansion in one of two ways: (ii) contributing more of her own funds to the business or (ii) borrowing the funds from a bank.
Identify at least two issues that Katrina should consider when trying to decide on the method for financing the expansion.