Answer: d. Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing.
Explanation:
Using short term financing is generally considered to be an aggressive strategy and is more often than not frowned upon by investors.
This is because of the reputational risk involved. A company that keeps using short term financing gives off the impression that it is barely keeping afloat and therefore relying on short term loans to continue functioning.
Other risks involved include, short term loans are usually given in small quantities so they cannot be used effectively as they will bareky go anywhere in terms of investment and their payback installment schedule can be in weeks instead of months like long term financing which can be detrimental to survival.
This is as opposed to a Conservative Approach that uses long term financing to finance most of it's Working Capital.
Answer:
blow molding.
Explanation:
sorry for the late answer :(
Answer:
moral hazard
Explanation:
Based on this scenario it can be said that Martha's behavior towards her spending habits is an example of moral hazard. This refers to when an individual decides to spend more or expose themselves to more risk because someone else is bearing the costs of those risks. Which is what the scholarship fund represents to Martha, someone is bearing the costs of Martha wasting that money, therefore she carelessly spends more when she received the scholarship.
Answer:
Graphs
Explanation:
A graph is a pictorial representation that shows a relationship between two or more variables. In the context of economics, it represents the clearly relationship in two-dimensional space. Also the economic analysis would be concerned with respect to the two variables.
Therefore as per the given situation, the graph should be the answer
Hence, the same is to be considered
