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:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

After-tax Profit

The net income remaining after all taxes have been deducted from total revenue.

NAICS Codes

North American Industrial Classification System codes that use numerical values to identify industries.

NAFTA Region

Refers to the geographic and economic region under the North American Free Trade Agreement, encompassing Canada, the United States, and Mexico.