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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.

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Anna11 [10]
5% of 2265$ is 113,25$
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11325$ : 100 = 113,25$
Second year cost is the first year’s plus 5% so
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8 0
3 years ago
You are a​ risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all
galben [10]

Answer:

It's best to invest in the second economy

Explanation:

The question does not provide information on the hypothetical economic expectations of the two economies, but as a risk-averse investor, it's a better idea to try to "spread" the risk instead of concentrating it.

In the first economy, conditions might or might not be good. If they are good, returns will be extraordinary because all stocks will provide good returns, but if conditions take a turn for the worse, all stocks prices will fall and the financial consequences will be catastrophic.

In the second economy, results might never be as good as in the first economy, but they also will not ever be as bad. The risk is spread between various stocks, and while some may fall in price, others will rise, and viceversa. For a risk-adverse investor, this a far better option.

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3 years ago
The balances in Sanchez Accounting Services' office supplies account on February 1 and February 28 were $1,100 and $475, respect
Hitman42 [59]

Answer:

$575

Explanation:

Given that,

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Which technique should you use to promote your business when responding to a customer’s inquiry? Use “we” language to promote re
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The other products of the business can be promoted along with the answers to the inquiry. This is the opportunity for the business to directly contact the customer so it has to be made use of. While another product is introduced the customer would be willing to know or buy the other product also.

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Rashid [163]

Answer:

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4 0
3 years ago
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