Why Might a Portion of Working Capital Be Funded with Long-Term

question 120

Multiple Choice

Why might a portion of working capital be funded with long-term debt?

• A)Because it is considered temporary working capital.
• B)Because working capital encompasses some fixed assets which tend to be long-term investments.
• C)Because of beneficial tax breaks on the interest paid on long-term debt.
• D)Because it is considered permanent working capital.

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Definitions:

Market Power

The ability of a company to manipulate the price of goods or services in the market to its advantage.

Market Power

The ability of a firm or group of firms to manipulate or influence the price or supply of a good or service in the market.

High-Speed

Typically refers to technologies or transportation methods that operate significantly faster than traditional standards, often used in contexts like high-speed internet or high-speed trains.

Magnetically Powered

Devices or systems that are operated or driven by magnetic force or magnetic fields.