Which Statement Does Not Correctly Describe Short-Term Financial Decisions

question 74

Multiple Choice

Which statement does not correctly describe short-term financial decisions?

• A) Most firms finance short-term assets with short-term borrowing.
• B) Most firms maintain a positive investment in working capital.
• C) Most firms finance their investment in working capital with short-term debt.
• D) Liquidity is particularly valued by small firms that face relatively high costs to raising funds on short notice.

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Definitions:

Communications Media

Platforms or tools used to store and deliver information or data. It spans traditional media like newspapers and television to digital media such as social media and streaming services.

ARGs

Alternate Reality Games; interactive games that use the real world as a platform, often involving multiple media and game elements to tell a story that may be affected by participants' ideas or actions.

Advergame

A video game that is created specifically to promote a product, brand, or marketing message, blending advertising and gaming.