The Risk to the Firm of Borrowing Using Short-Term Credit

question 28

True/False

The risk to the firm of borrowing using short-term credit is usually greater than if it used long-term debt.Added risk stems from (1)the greater variability of interest costs on short-term than long-term debt and (2)the fact that even if its long-term prospects are good,the firm's lenders may not be willing to renew short-term loans if the firm is temporarily unable to repay those loans.

Identify the characteristics of primary groups versus other group types.

Analyze the formation of social relationships within cyberspace.

Appreciate the importance of networks in job success and social mobility.

Evaluate the impact of group conformity on intra-group and inter-group dynamics.

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Definitions:

Production Possibilities

A graphical representation of the alternative combinations of goods and services an economy can produce when all its resources are fully and efficiently utilized.

Specialize

To concentrate on and become expert in a particular subject or skill.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or internationally.

Production Possibilities Curve

A graph that shows the various combinations of outputs that a society can produce if all its resources are being used efficiently.