Question: cafe time inc have asked you for a 1 year loan to finance Question ( 7 ) Caf - time Inc. have asked you for

cafe time inc have asked you for a 1 year loan to finance Question (7)
Caf-time Inc. have asked you for a 1-yearloan to finance the purchase of 10-year leases on a number of new coffee shops. What would be your advice?
A short-term loan is a poor choice since interest rates are usually much higher on short-term loans.
A longer-term loan would be a poor choice since it would lock Caf-time into making extended
repayments.
A short-term loan is a good choice because it offers Caf-time significant flexibility.
A longer-term loan would be a better choice since it can be repaid from the operating profits
generated by the stores.
cafe time inc have asked you for a 1 year loan

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