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1. What would you do if you found your school in this situation? A financial instrument that contains a written undertaking by one party (the bond issuer or bond maker) to pay another party (the bond beneficiary) a specified amount of money, either on demand or at a specified future date (2020, Investopedia). If you are in this position rather adjust. I will try I will focus reducing costs in order to reduce debt. Of course, there must be spending on secondary things. I will try to collect all the basic necessities of the school in a way that is sufficient not to harm the school services, which will make it easier for me to reduce debts as a first measure.

2. Would you issue more debt? Explain.

Actually, I'm not going to do that but I'm going to focus on cutting costs and trying to get as little as possible. Because debts, especially for school owners, are not, but rather, the right choice to launch for several reasons: 1. First the school will find itself in a more dangerous financial situation, the reason is that the increase in debt can do nothing but exacerbate so you cannot solve the problem with another problem. 2. The second reason, as you know, is that the higher the price of debt, the higher the interest rate on it. Getting into large amounts of debt can mean paying increased interest, even if the debt is short-term and the teacher is not able to take on the new debt.

3. Are there alternatives? explains. The alternatives as already partially mentioned are:

1. Reducing unnecessary costs. The significant cost reduction allows the school to take on less and less debt, while providing significant savings. 2. Finding new sources of income. Example: 1. Create online education courses. 2. Allow creative students to write, but write and sell their books, taking into account taking a few expenses. 3. Allowing courses or any of the lessons to be presented in its hall with a specified percentage of the money for the school as a much better option than going to a hall designated for lessons. Organizing halls to display art or cultural books for a company with a specified percentage of profits.

4. What are some positives and negatives to the promissory note practice? a. Please explain at least two positives and at least two negatives.

Positives: 1. Receive income through the interest payments 2. Profit if you resell the bond at a higher price. Negatives: 1. Bonds pay out lower returns than stocks. 2. Bond yields can fall.

Reference: By BOVAIRD, C. ( July 08, 2020) Corporate Bonds: Advantages and Disadvantages. investopedia https://www.investopedia.com/articles/investing/080916/corporate-bonds-advantages-anddisadvantages.asp...