The More Short-Term Financing There Is Relative to Long-Term Financing

question 98

True/False

The more short-term financing there is relative to long-term financing, the riskier the financial structure.

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Definitions:

Taxpayers

Taxpayers are individuals or entities that are required by law to pay taxes to the government, based on their income, property, and other tax liabilities.

Tax Revenue

Income that is gained by governments through taxation, which is then used to fund public services and government obligations.

White Water Rafting

an adventurous outdoor activity which involves navigating rivers or waterways with varying degrees of rough water or rapids in a raft.

Unit Cost

The expenditure a business incurs in the production, storage, and distribution of an individual unit of a certain product or service.