Which of the Following Is NOT True Regarding the Use

question 86

Multiple Choice

Which of the following is NOT true regarding the use of short-term debt?

• A) It must be rolled over more often than long-term debt.
• B) There is uncertainty connected with interest costs on short-term debt from year to year.
• C) The firm is subjected to greater liquidity risk when using short-term credit.
• D) Interest rates are usually higher on short-term debt.

---

Definitions:

Skin Maceration

The softening and breaking down of skin resulting from prolonged exposure to moisture, which can increase the risk of infection.

Subcutaneous Tissue

The layer of tissue directly under the skin, consisting of connective tissue and fat, which provides insulation and cushioning for the body.

Wound Healing

The biological process by which the skin and tissues repair themselves after injury, involving several stages including hemostasis, inflammation, proliferation, and remodeling.

Diabetic Mellitus

A metabolic disease characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin secretion, insulin action, or both.