Before they seek financing, Mattel needs to be sure that obtaining a long-term loan to expand their production facilities will allow them to increase production, sales, and gain market share from Hasbro. Which key consideration for choosing a form of financing does this example illustrate?
A) Influence on company operations
B) External factors
C) Term of financing
D) Amount of financing
E) Cost of financing
Question 2
Many computer programmers make 115,000 per year or more, and they sometimes have multiple companies bidding for their services. As HR manager for a software development firm, you want to attract the best candidates while keeping employment costs from increasing to unsustainable levels. If your competitors offer starting salaries of 115,000, which of the following is your best strategy?
A) Increase your starting salaries to 175,000.
B) Increase your starting salaries to 200,000.
C) Offer 135,000 plus a 30 cash bonus.
D) Offer 115,000 plus a generous array of non-monetary benefits.
E) Offer 75,000.
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