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:

Parasuicide

Any potentially lethal action against the self that does not result in death. Also called attempted suicide or failed suicide.

Shoplifting

The act of stealthily taking goods from a store without paying for them, often considered a form of petty theft.

Stubbornness

A personality trait characterized by an unwillingness to change one’s opinion or course of action despite reason to do so.

Prescription Pills

Medications that are legally dispensed by a pharmacist following a healthcare provider's order.