Which Three of the Following Are Advantages of Bank Borrowing

question 31

Multiple Choice

Which three of the following are advantages of bank borrowing, when compared with selling bonds?

• A) A bank is generally more flexible in altering conditions and repayment schedules if the economic circumstances facing the firm change.
• B) A bank loan can be arranged very quickly.
• C) Administrative and legal costs are lower.
• D) The rate of interest is usually lower.

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