Cree industrial lighting company is looking to deepen its capital. Which one of these steps should...

Cree industrial lighting company is looking to deepen its capital. Which one of these steps should the Cree company take to accomplish this?

Group of answer choices

(A)Refinance their business loans and decrease their carried debt amount.

(B)Restructure and reorganize its departments to shorten production time.

(C)Invest in additional education and advanced training programs for their employees.

Expert Solution

The Correct answer is OPTION A i.e Refinance their business loans and decrease their carried debt amount.

Explanation :-

Financing for any company is very important to keep the company working. The company have various options of Financing is its capital. These can be acquiring fresh capital through share issue, debenture issue, business loan etc.

Cree industrial lighting company is now looking to deepen its capital. The company can accomplish this by refinancing its business loans and decreasing there carried debt amount.
Refinancing business loan would help in acquiring fresh capital from a new date and interest and anyone would easily agree to give loan if the company pays off its older debts.

Whereas the options like restructuring and reorganizing the company's department to shorten production time would not help the company in any way in deepening its capital. It would only help in increasing profits and cost reduction.
Another option of investing in additional education and advanced training programs to the Employees would help in improving the efficiency and accuracy of the employees. It will also improve the time taken for producing each product but not going to help in deepening the capital of the company.

So, the correct answer is option A. i.e Refinance their business loans and decrease their carried debt amount.

.

ekkarill92 answered 2 years ago

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