When a Firm Finances Long-Term Assets with Short-Term Sources of Funding

question 47

Multiple Choice

When a firm finances long-term assets with short-term sources of funding, it:

• A)reduces the risk of cash shortage
• B)will have lower interest expense
• C)improves the leverage ratio
• D)is ignoring the principle of matched maturities

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Technological Advances

The introduction of new technologies or the improvement of existing ones, often leading to increased efficiency, effectiveness, or capabilities.

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