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A corporation is looking to take advantage of market conditions and begin expanding as soon as possible. To do so, the
company requires cash to purchase new buildings, machinery, and other capital goods. What should the directors keep in mind as they consider the type of funding to pursue?

A) Wild swings in prices on the primary market make indirect financing more risky.

B) Financial intermediaries will likely offer disappointingly low interest rates.

C) The amount of possible funding from a financial intermediary is likely limited.

D) Involving a financial intermediary will likely make borrowing more expensive.

Answer :

Parrain

The corporation in trying to borrow money, should be aware that D) Involving a financial intermediary will likely make borrowing more expensive.

Why is this the case?

When companies borrow money from the public through financial intermediaries, they will also have to pay some fees for the help of the financial intermediary.

This means that in addition to paying back their loans with interest, they will also have to pay extra fees to the intermediary. This makes borrowing more expensive.

In conclusion, option D is correct.

Find out more on the roles of financial intermediaries at https://brainly.com/question/12702778.

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