Answer to Question #292032 in Economics for kinza

Question

What will happen if both shareholders and board of directors agreed to purchase the equipment, provided that an alternative source of financing?

Answer 1

Both shareholders and board of directors agreed to purchase the equipment, provided that an alternative source of financing would be found. In the end, the company that sold them the equipment was able to provide direct credit that proved to be a sound financial solution. In the next family council this point was brought to the agenda, lessons learned from this experience were incorporated in the investment guidelines, and all were parties were satisfied with the outcome.