Question

Samantha owns a small coffee shop and needs to borrow money for improvements and equipment upgrades. After looking at her financial situation, she finds that her debt-to-equity ratio is quite low. Which type of financing should Samantha apply for?

A. debt
B. equity
C. subprime
D. short term

Answer 1

It would be Short term D

Explanation:

"This type of financing is normally needed because of uneven flow of cash into the business, the seasonal pattern of business" this means that even tho that Samantha is low on money she will be okay wiht this finacing.