Which One of These Is Most Associated with a Disadvantage

question 56

Multiple Choice

Which one of these is most associated with a disadvantage of 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.