An Advantage of Short-Term Over Long-Term Borrowing Is

question 47

Multiple Choice

An advantage of short-term over long-term borrowing is:

• A) no need to repay.
• B) flexibility.
• C) lower costs.
• D) all of the above.

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Definitions:

Proportional Tax

A tax system where the rate of tax is constant regardless of the amount subject to tax, meaning everyone pays the same percentage of their income.

Local Tax

Taxes imposed by local government entities, such as cities or counties, typically used to fund local services like schools, roads, and public safety.

Business Property

Assets owned by a business, including physical property like real estate and equipment, as well as intangible assets like intellectual property.

Benefits-Received Principle

A theory in taxation that believes individuals should be taxed based on the level of government services they consume.