Scenario: Verandas International
Verandas International is expanding its operations in North America. The Dutch company supplies products needed by restaurants with outdoor tables. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position.
-Verandas International will need additional capital if it is to expand its operations. Lars Van der Schuyler, vice president of international operations, knows that potential sources of new financing include all of the following EXCEPT ________.
A) borrowing
B) issuing equity
C) internal funding
D) SDRs

Question

Quizplus · Accepted Answer

SDRs (Special Drawing Rights) are not a potential source of financing as they are a reserve asset created by the International Monetary Fund and cannot be directly accessed by companies like Verandas International. The other options listed (borrowing, issuing equity, and internal funding) are all potential sources of new financing for the company.

Scenario: Verandas International Verandas International Is Expanding Its Operations in North America. the North