Why Do Firms Generally Choose to Finance Temporary Net Operating

question 7

Multiple Choice

Why do firms generally choose to finance temporary net operating working capital with short-term debt?

• A)Matching the maturities of assets and liabilities reduces risk.
• B)Short-term interest rates have traditionally been more stable than long-term interest rates.
• C)A firm that borrows heavily on a long-term basis is more apt to be unable to repay the debt than a firm that borrows short term.
• D)The yield curve has traditionally been downward sloping.

Understand the diverse philosophical perspectives on the meaning of life.

Recognize the impact of literary and philosophical metaphors on the conceptualization of life’s meaning.

Identify the historical and cultural context of philosophical ideas about life.

Analyze the relationship between life’s activities and its ultimate significance.

---

Definitions:

Amygdala

A small, almond-shaped structure in the brain involved in emotion regulation, especially fear and the encoding of memories of emotional events.

Long-Term Memories

Memories stored with an unlimited capacity that can last from a few days to a lifetime, including both declarative (explicit) memories, such as facts and events, and non-declarative (implicit) memories, such as skills and conditioned responses.

Eyewitness Memory

The recall and recognition capabilities of individuals who have observed specific incidents, particularly used in the context of legal evidence.

Leading Questions

A type of question that implies or contains its own answer, often guiding the respondent towards a desired response.