Which of the Following Is an Advantage of the Use

question 112

Multiple Choice

Which of the following is an advantage of the use of current liabilities to finance assets?

• A) less risk of illiquidity
• B) more flexibility
• C) lower interest costs
• D) both B and C

---

Definitions:

Industry

A category or sector of the economy that involves similar types of products or services, characterized by common production processes and markets.

Top-Down Analysis

Investment analysis approach that starts with global economy conditions before drilling down to industry and company-specific factors.

Fixed Costs

Business expenses that remain the same regardless of the level of production or sales, such as rent, salaries, or loan payments.

Variable Costs

Costs that vary directly with the level of output or production activity.