Case 1: Can I be a debtor?
(Applied with chapter 5 and 7)
Sesamiworm, a book publisher, is a new company, The company was just established in a year ago. Over the past year, the operating result went well. The performance has proved that Sesamiworm is likely to grow in its business.
Sesamiworm’s management has a plan to tap a new type of readers. At this moment, only a youth aged from 12-18 is its customer target. It plans to escalate to a business for kid book. For this reason, fund is a big issue for Sesamiworm. The management must discuss this.
Sesamiworm’s management contacted “UFK bank” to borrow but it found out that the interest (cost)
charged by UFK is too costly. To reduce a financial cost, Sesamiworm decided to issue bond instead of
using a bank loan.