Question

If you were going to lend money to a company, which one would you choose and why? Remember, the bigger and safer the company, the lower the return; but if a company is too risky, you might lose everything. That said, what company out there do you think would be a good candidate to borrow money from you?

Answer 1

Explanation:

It is true that bigger and safer the company, the lower the return. But It is also true that lending loan to a bigger company will make your loan safe and there are pretty good chances that the company will return the loan on the agreed upon terms. No doubt, the return may not be big and huge, but the money you lend will be safe. So if i will have to lend money to a company, i would choose a bigger company who has sound financial statements and has a pretty good expansion plans for their future business and who has a firm reputation in the business market. Small companies or new entrants don't have history of success and one should not lend such huge amounts to companies for whom you have doubts about the business functions.

Answer 2

A smaller company that is more likely to help u