Which of the Following Statements Is CORRECT

question 29

Multiple Choice

Which of the following statements is CORRECT?

• A) Under normal conditions,a firm's expected ROE would probably be higher if it financed with short-term rather than with long-term debt,but using short-term debt would probably increase the firm's risk.
• B) Conservative firms generally use no short-term debt and thus have zero current liabilities.
• C) A short-term loan can usually be obtained more quickly than a long-term loan,but the cost of short-term debt is normally higher than that of long-term debt.
• D) If a firm that can borrow from its bank at a 6% interest rate buys materials on terms of 2/10,net 30,and if it must pay by Day 30 or else be cut off,then we would expect to see zero accounts payable on its balance sheet.
• E) If one of your firm's customers is "stretching" its accounts payable,this may be a nuisance but it will not have an adverse financial impact on your firm if the customer periodically pays off its entire balance.

Recognize the impact of technological advancements on industries and market practices.

Understand the concept of the Internet of Things (IoT) and its applications.

Grasp the significance of environmental scanning in identifying technological and competitive forces.

Acknowledge the role of marketing strategies in different competitive environments.

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Definitions:

Conflicts

Disagreements or clashes arising from differing interests, values, or beliefs among parties.

Compensate

involves providing something, often money, in exchange for a service or to make amends for loss.

Founders

Founders are individuals who establish and initially lead a business or organization, setting its mission, vision, and strategies.

Ventures

Entrepreneurial projects or businesses started by individuals or groups, often involving risk.