Business Organizations Always Use Long-Term Financing for (Both) Short-Term and Long-Term

question 134

True/False

Business organizations always use long-term financing for (both) short-term and long-term needs, but they never use short-term financing for (both) short-term and long-term needs.

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Definitions:

Cash Manager

An individual or team responsible for managing a company's cash flow to meet operational needs and investment goals.

Cash Cycle

The duration of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.

Firm's Profitability

Indicates how effectively a company generates profit compared to its expenses and other relevant costs.

Inventory Period

The average time it takes for inventory to be sold and converted into cash or accounts receivable.