Which of the Following Is Not an Example of Short-Term

question 15

Multiple Choice

Which of the following is not an example of short-term finance?

• A) Trade credit
• B) Factoring
• C) Finance lease
• D) Bank overdraft

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Definitions:

Firm-Specific

Refers to risk or information that is unique to a particular company and not related to the market or industry.

Covariance

A measure used to determine how two variables change together, indicating the direction of the relationship.

Variance

A statistical measurement of the dispersion of data points in a data set around the mean, indicating the extent to which the numbers differ from each other.

Correlation Coefficient

A statistical measure that determines the degree to which two variables move in relation to each other, where +1 indicates a perfect positive correlation and -1 indicates a perfect negative correlation.