Which of the Following Is a Long-Term Financing Option for a Firm

question 35

Multiple Choice

Which of the following is a long-term financing option for a firm?

• A)Trade credit
• B)Revolving credit agreements
• C)Commercial paper
• D)Corporate bonds

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, affecting its depreciation.

Machine

Equipment or apparatus designed to perform a specific task in the manufacturing process.

Present Value

The immediate worth of anticipated money or streams of cash flows, computed with an agreed-upon rate of return.

Cash Inflows

Money received by a business from its operational, financing, and investing activities.