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Firms generally choose to finance temporary current operating assets with short-term debt because
Demand Instrument
A financial document that requires payment to the holder on demand or at a pre-defined time.
Secondary Party
An individual or entity indirectly involved in a legal agreement or crime, not the principal actor or participant.
Unconditional Promise
A commitment that does not depend on any conditions to be fulfilled; it is absolute and unequivocal.
Negotiable
Capable of being discussed, transferred, or modified in terms of conditions or agreement.
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