Home Grades Personalized Reviews Discussion Course Materials Working Capital Man

Question

Home Grades Personalized Reviews Discussion Course Materials Working Capital Management Graded Assignment Read Chapter 15 | Back to Assignment Due Thursday 08.02.18 at 11:45 PM Attempts S. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following Keep the Highest: /4 table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions This loan is more flexible and can be used to adapt to changing market The lender will insist on a more thorough financial examination before extending this kind of credit. Suppose you are running a firm that needs to raise capital today and you are choosing between short-term and have a s you expect that this situation will soon change and the firm's need for external funds will diminish. Which funding source is likely best for your firm? O Long-term debt O Short-term debt 134 Flash Player wa 3 3.341 2004-2016 Aplia All rights reserved Grade It 2013 Corgage Leanming excipt as oted ll rights eserved Continae without saving

Explanation / Answer

More Covenants - Long Term Loan

More Flexible - Short Term Loan

Throrough Financial Examination - Long Term Loan

Short Term Debt

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.