Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.
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. Review the content in Intellipath and your textbook readings for Unit 3, and watch this short video, then answer the following questions.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.