Question

Sonic Corp. manufactures ski and snowboarding equipment. It has estimated that this year there will be substantial growth in its sales during the winter months. It approaches the bank for credit. What is the purpose of such credit known as?

A. expansion


B. inventory building


C. debt management


D. emergency maintenance

Answer 1

Sonic Corp. manufactures ski and snowboarding equipment. It has estimated that this year there will be substantial growth in its sales during the winter months. It approaches the bank for credit. What is the purpose of such credit known as?

A.

expansion

B.

inventory building

C.

debt management

D.

emergency maintenance

Step-by-step explanation:

#platofam

Answer 2

You would really need to know what Sonic plans to do with the funds from the loan.

If they plan to build more plants, buy more machines, increase their manufacturing capacity to meet the increased demand, then the answer would be expansion.

If they just need to buy more materials to make their equipment then this would be inventory building.