1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergey [27]
3 years ago
9

Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not

be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disadvantages.
The following statement identifies a possible characteristic of short-term financing.

Consider this case:
Short-term loans usually have a lower cost than long-term loans. Identify whether the preceding statement is true or false.

a. This statement is false and a disadvantage of short-term financing.
b. This statement is true and an advantage of short-term financing.

Firms use a variety of short-term financing sources to support working capital. Use the descriptions in the following table to identify the short-term financing source.

Description Short-Term Financing Source
A formal, committed line of credit extended by a bank or other lending institution.
An obligation backed by collateral, often inventories or accounts receivable.
Business
1 answer:
Murljashka [212]3 years ago
7 0

Answer:

1. Consider this case:

Short-term loans usually have a lower cost than long-term loans. Identify whether the preceding statement is true or false.

a. This statement is false and a disadvantage of short-term financing.

2. Identify the short-term financing source:

An obligation backed by collateral, often inventories or accounts receivable.

Explanation:

Some organizations regularly require short-term financing to ease uneven cash flows.  It is also called working capital financing.  Its duration is less than 12 months, unlike long-term financing that can last more than two years.  Most of this financing is arranged with banks in the form of bank overdraft.

You might be interested in
Two individuals at a retail store work the same cash register. You evaluate this situation as Select one: a. Supporting internal
spin [16.1K]

Answer:

B. A violation of establishment of responsibility

Explanation:

They both should have established something different to work on but for both of them to work the same cash register, it is a violation of establishment of responsibility

5 0
3 years ago
7. Allowance, a paycheck, gifts, and gains from an investment are examples of
Finger [1]

Answer:a

Explanation:

8 0
3 years ago
Which of the following people would tend to favor a communist economy?
valentinak56 [21]
C. Liz wants to live in a country where the government makes almost all the economic decisions.
3 0
3 years ago
Describe at least two advantages a large company has over a smaller company
Sliva [168]
 a larger company can seem more reliable to some people and often times large companies can run smaller ones out of buisness
8 0
3 years ago
Read 2 more answers
There are many publics with whom PR professionals interact, including an organization's _____________ with company newsletters,
Scrat [10]

Answer:

employees

Explanation:

Employees are individuals that are hired to fill a certain job position as well as perform a certain task in an organization.

In the case of the PR section of a business, the section communicates with employees, stockholders, etc depending on the information that needs to be sent to either employees or stockholders.

In the above question, the PR communicates with employees through newsletters, social events, recognition of performance internally and externally, etc; as directed b the management of an organization.

Cheers.

3 0
3 years ago
Other questions:
  • The marketing process includes decisions about the best way to get the product to the consumer.
    13·2 answers
  • Exercise 11-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $180,000. It is expected to prod
    10·1 answer
  • On december 31, 2015, cool wear inc. had balances in accounts receivable and allowance for uncollectible accounts of $41,000 and
    11·1 answer
  • The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for
    10·1 answer
  • Why do central banks play an important role in the global economy?
    14·1 answer
  • A fee collected by a real estate agent upon the sale of a property is
    12·1 answer
  • Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on
    5·1 answer
  • Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price flo
    12·1 answer
  • The control systems used in international firms include: personal, bureaucratic, output and Blank______.
    7·1 answer
  • Bank a has total deposits of $125 million and total reserves of $26 million. the required reserve ratio is 15 percent. the bank
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!