Reinvesting in the Business
» Reinvesting in the Business, Volume 3, Issue 3, 2003
6. Suppose you had the opportunity to make an investment in your business that would allow earnings to rise 25 percent within the next two years. The project had minimal risk, but you did NOT have the cash right then to make the investment. Would you most likely:?
| Response | ||||
|---|---|---|---|---|
| 1 | Wait until you had accumulated enough cash | 42 | ||
| 2 | Borrow the money and make the investment | 48 | ||
| 3 | Seek an outside investor for your business | 5 | ||
| 4 | DK/Refuse | 5 | ||
| Total (%) | 100 | |||
| N | 751 | |||
Notes: Forty-eight (48) percent of small employers would borrow (assuming inadequate cash on hand) if a business investment would allow them to make a 25 percent return in two years with minimal risk (Q#6).
