question archive Green Opt Inc
Green Opt Inc
Subject:BusinessPrice:2.87 Bought7
Green Opt Inc. needed long term funding for a major expansion into the European market. The company was financially strong with an excellent credit rating and had no need to provide collateral to obtain funding. It also had time to develop the best funding option to meet its expansion needs.
Which type of financing option below will Green Opt Inc. likely use?
- Debenture bond
- Long term loan
- Trade credit
- Mortgage bond
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Answer:
Debenture bond
Step-by-step explanation
Green Opt Inc will likely go for a Debenture bond, a Debenture bond do not want a collateral baking, It is a debt instrument that do not include collateral, it only rely or depend on the credit worthiness of a company or its reputation to offer a company or an organization.
Reference;
https://www.money-zine.com/definitions/investing-dictionary/debenture-bond/
https://www.thebalance.com/how-do-debenture-bonds-work-4160251
