If the Total Long Term Financing of the Firm Is

question 28

Multiple Choice

If the total long term financing of the firm is greater than the total financing needs for part of the year and less than the needs for some of the year due to seasonal fluctuations, the company will most likely:

• A) hold excess cash.
• B) borrow short term and hold excess cash.
• C) hold excess cash and reduce business activities.
• D) invest in marketable securities and borrow short term.

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Definitions:

Intention to Persuade

The deliberate effort to influence others' beliefs or actions through argument, reasoning, or appeal.

Huckster

A person who sells or advertises something in an aggressive, dishonest, or annoying manner.

Ingratiation

A psychological tactic involving the use of flattery or other forms of social manipulation to gain favor or acceptance from others.

Personal Expertise

The unique skills, knowledge, and experience possessed by an individual in a particular field or area.