There are two ways for companies to borrow money. They can sign a note to borrow money
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Question:
There are two ways for companies to borrow money. They can sign a note to borrow money from a bank or they can issue bonds to investors. There are advantages and disadvantages of both ways of borrowing money. Watch this short video, then answer the following questions. Link: https://youtu.be/BWnZh9at9ZU?si=HZFbFY1WY_DZiHt-
What is the main difference between notes payable & bonds payable?
- Explain a reason a company might need to borrow a large sum of money.
- Identify an advantage and disadvantage of signing a note.
- Identify an advantage and disadvantage of selling bonds to investors.
Related Book For
Financial Accounting IFRS
ISBN: 978-1118285909
2nd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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