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

question 120

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) ignores the principle of matched maturities.

Identify and distinguish between different types of market environments such as monopoly, oligopoly, and hypercompetition.

Grasp the concept of strategic intent and its role in focusing organizational efforts towards a unified goal.

Comprehend the essence of strategic management and its impact on competitive advantage.

Understand Porter's five forces model and its application in evaluating industry attractiveness.

---

Definitions:

Valuable Selling Space

Prime retail or commercial area within a store or market that is strategically used to display and sell products to maximize customer purchases.

Markdown

A reduction from the original or listed price of a product, often to clear inventory or stimulate sales.

Final Selling Price

The ultimate price at which a product or service is sold to the consumer, including all taxes, fees, and discounts applied.

Discounting

The practice of reducing the selling price of goods or services, typically to stimulate sales or clear out inventory.