Selection of a Source of Short-Term Financing Should Include All

question 13

Multiple Choice

Selection of a source of short-term financing should include all of the following EXCEPT

• A) the effective cost of credit.
• B) the availability of financing in the amount and for the time needed.
• C) the floatation costs for debentures.
• D) the effect of the use of credit from a particular source on the cost and availability of other sources of credit.

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Definitions:

Liquidated Damages

A bona fide estimate of the monetary damages that would flow from the breach of a contract.

Consequential Damages

Indirect damages that do not flow directly from the act but occur as a consequence of the initial act, often involving loss of profit or other secondary losses.

Liquidated Damages

A pre-determined sum agreed upon by parties in a contract as compensation for breach of contract, where actual damages are difficult to ascertain.