When Financial Managers Are Asked the Key Reason for Choosing

question 49

True/False

When financial managers are asked the key reason for choosing short-term rather than long-term debt,they often say that they try to match the maturities of the firm's assets and liabilities.

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Definitions:

Dow Jones

An American stock market index that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session.

Price-Weighted Average

A stock index in which each company's influence on the index's performance is proportional to its stock price.

International Sales

Revenue generated from the sale of products or services outside of the company's home country.

Bankers' Acceptance

A short-term debt instrument issued by a company but guaranteed by a bank, often used in international trade.