Answer:
Issuing bonds will be the better option for this company. Mainly because they do not like to give up the control of the company or to change its equity structure.
When the bonds are issued, the company gets the money from the investors and has to pay an agreed amount of interest periodically until maturity of the bond, where the company will have to pay the face value of the bonds.
Explanation:
Option D, Both A & C
Explanation:
A company invested $400,000 in a technology that reduced the overall costs of production by reducing their cost per unit from $2 to $1.85 . Later, a manager has an opportunity to outsource production to another company at a cost per unit of $1.75 . If you are the manager, you should consider the $400,000 as a sunk cost, not relevant to the decision and should ignore the $400,000 fixed cost.
Sunk cost is the cost which is already incurred in past and does not have any significance in decision making.
A sunk cost is already incurred in the fields of economy and business decision-making and can not be recovered. Sunk costs are contrasted with future costs, which can be avoided if measures are taken.
You can be a streamer!
Two Benefits of being a streamer is.
- Companies can promote your channel.
Two drawbacks of being a streamer is.
- Your channel can get taken down or people can be rude to you.
- You can forgot about uploading and may lose subscribers.
Let me know if you have any questions.
~ Lily from Brainly.
