Final answer:
The Bogart Company should consider several factors like the rate of return and alignment with strategic goals when choosing between investment alternatives. The financial strategy for expansion, the impact of failing safeguards, and different life stages all influence investment decisions.
Step-by-step explanation:
The Bogart Company is considering two alternatives for an investment totaling $149,100. Potential strategies for deciding between these alternatives may include conducting a cost-benefit analysis, considering the rate of return, assessing risks associated with each option, and determining how each investment aligns with the company's long-term strategic goals. Factors influencing their decision-making process could involve current market conditions, the company's financial health, the competitive landscape, as well as the expected time frame for seeing a return on their investment.
When raising funds for major expansion, a small firm could consider borrowing, which incurs debt but keeps ownership intact, or issuing stock, which dilutes ownership but doesn't incur debt. The choice may depend on the company's existing debt levels, the cost of borrowing, and the firm's openness to involving new shareholders in the decision-making process.
A company can fail if the safeguards like financial controls, regulatory compliance, quality assurance, or risk management measures are not properly implemented or fail. Such failures can lead to financial loss, legal consequences, and reputational damage.
Different stages in life can influence investment strategies; for example, a 30-year-old might prioritize growth and riskier investments for long-term gains, whereas a 65-year-old might focus on preserving capital and generating stable income streams.