Merit Enterprise Corp. Option one is never a great choice unless it’s the last option available. You should never want to put a growing corporation into further debt by taking out loans. Plus the bank will probably hold more of the share in the company. Also 4 billion dollar is a substantial amount of money having to pay back and could put stress on the organization if any financial situations ever aroused. Taking out this loan will have more people accountable for the company’s wealth. The only thing positive about doing this is that Merit is probably guaranteed to receive the money that they are asking. The biggest drawback is creating debt with multiple debtors. Public corporations are capable of raising capital from an IPO, as employees or individuals buy shares in the company, since public corporations are publicly listed on a stock exchange. This is the most significant advantage of a public corporation. In addition to the ease of raising capital, public companies may issue their securities as compensation for those that provide services to the company, such as their directors, officers and employees. While private companies may also issue their securities as compensation for services, the recipient of those securities often have difficulty selling those securities on the open market. Securities from a public company typically have an established fair market value at any given time as determined by the price the security is sold for on the stock exchange where the security is traded. Going public will result in increased capital for the issuer. A public offering places a value on your company's stock and insiders who retain stock may be able to sell their shares or use them as collateral. Going public also creates a type of currency in the form of its stock that the business can use to make acquisitions. In addition, the company will likely have access to capital markets for future financing needs. Going public can also be an extremely difficult process, especially if the business and its management are not familiar with the registration process. The company will need to put all its business affairs in order and the day-to-day business operations will likely be disrupted. Another disadvantage of going public is that public companies operate under close scrutiny. Even though both option 1 and 2 has advantages and disadvantages, I would recommend option 2 because employees having more say so in how they corporation is ran, tends to retain valuable and productive employees. You can also have a employee deduction for their share of the company’s stock. It will allow the company to be without a major debt and be more flexible when other financial situations arise. I think Sara will choose option 2 because she is CFO of the organization. This will make her more valuable to the organization, as well give her a lot of input on how the organization is conducted. The most important reason is that this will put more money into her retirement, especially if the company continues to be successful!