1 dominic and matherson a finance management company lends, Ask an Expert

Finance

1. Dominic and Matherson, a finance management company, lends money to Ebok, a fast food chain, in order to help Ebok market its new product. Dominic and Matherson provides financial support in the form of bonds. Which of the following financing options is being used by Ebok in the given scenario?

a. Trade credit

b. Long-term debt

c. Commercial paper

d. Factoring

2. An advantage of offering lenient credit terms is that it can help a firm:

a. increase its sales.

b. reduce its risk associated with financial leverage.

c. improve cash flows from an investment.

d. decrease its debt.

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