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afrah afrah
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8 months ago
Which statement best describes short-term versus long-term financing?


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Flexibility is an advantage of short-term credit, but this is somewhat offset by the high flotation costs associated with the need to repeatedly renew short-term credit.



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A short-term loan can usually be obtained more quickly than a long-term loan, but the penalty for early repayment of a short-term loan is normally significantly higher than that for a long-term loan.



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The flexibility, cost, and riskiness of short-term versus long-term credit are dependent on the type of credit that is actually used.



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Short-term debt is often less costly than long-term debt, and the major reason for this is that short-term debt exposes the borrowing firm to much less risk than long-term debt.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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bhturnerbhturner
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8 months ago
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afrah Author
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8 months ago
Brilliant ツ
larrybrads
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Yesterday
Correct Slight Smile TY
branbran2k16
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2 hours ago
Smart ... Thanks!
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