Question

Topic: (1) Mr. Amampo Bunkers, President & CEO of Bunkers, Inc., a medium-sized manufacturing company who needs additional funds to purchase equipment for a new production facility argues that it does not matter whether the equipment is financed by a bond payable or by borrowing the money from a local bank in the form of an installment note. Afterward, argues Mr. Bunkers, debt is debt. Do you agree with Mr. Bunkers? Explain in detail why you agree (or disagree) with Mr. Bunkers.

Answer 1

I agree to the statement of Mr. Bunkers that a debt is debt to a great extent but a debt and its details may vary quite a lot based on the type of borrow that the organization makes. I believe that while borrowing a facility, an organization have to be aware about the type of loan it takes, the amount of loan required, the rate of interest, details of the security, etc. If the loan is a bank loan or financed by a bond payable or by borrowing from a local bank or in the form of a installment, the organization has to be aware of the circumstances and the details required. I believe that an organization needs to be very much sensitive and serious about such cases so that they do not incur loss by somehow.