As a Financial Manager, You Decide to Borrow Funds in Order

question 100

Multiple Choice

As a financial manager, you decide to borrow funds in order to meet payroll. Your company will pay back the funds within nine months. You are seeking ________ financing.

• A)long-term
• B)short-term
• C)retained earnings
• D)equity

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Definitions:

Expected Value

In statistics, Expected Value refers to the sum of all possible values each multiplied by the probability of its occurrence, offering a measure of the center of distribution of a variable.

Net Profit

The total earnings minus the costs and expenses of a business or investment, indicating the actual profit made.

Investment

The process of distributing funds or resources with the aim of earning income or profit.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and more, often diversified to reduce risk.