What Motivation Is Provided for Managers Not to Follow the Relaxed

question 112

Multiple Choice

What motivation is provided for managers not to follow the relaxed strategy of long- versus short-term financing?

• A)transaction costs are required to continually obtain financing
• B)short-term investment income is often unattractive
• C)investment opportunities must frequently be ignored
• D)long-term financing has burdensome tax consequences

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Definitions:

Budget Deficit

A budget deficit occurs when an entity, typically a government, spends more money than it receives in revenue over a specific period.

Exports

Goods or services sent to another country for sale.

Dumping

The practice of selling a product in a foreign market at a price that is below the cost of production or below the price in the home market, often with the aim of driving out competition.

Producer

A producer is an individual or organization that creates goods or services for sale to consumers or other businesses.