Which option would you like to spend the $200,000 loan on in order to expand the business and make more money in the future? Whatever you do not choose will still be an issue for your company so chose wisely. A) Pay raises for existing employees. Some of your key employees are threatening to leave unless they receive significant increases in their compensation.
B) Purchasing new machinery to increase production. The existing machinery has been
fixed many times and is currently being repaired for the third time this year.
C) Hiring new employees. Most of your managers complain that because they are severely understaffed, they cannot meet production quotas.
D) Increased advertising in trade magazines. Last year a consultant advised that the key to the future growth of your business is substantially increasing your advertising
budget.
E) Buying land on which to build a new factory. You have found a place to build a new factory in another part of the country where the costs are much lower.