Which of the Following Is a Disadvantage of the Use

question 8

Multiple Choice

Which of the following is a disadvantage of the use of current liabilities to finance assets?

• A) greater risk of illiquidity
• B) less flexibility
• C) higher interest costs
• D) the hedging principle

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Definitions:

Translation

The process of converting text or speech from one language to another.

Tautology

A redundant or repetitive statement in which the conclusion is equivalent to the premise.

Logic of Statements

Concerns the principles and criteria for evaluating the validity and coherence of declarative sentences that assert something.

Conjunction

A grammatically correct construction used to assert that two statements are both true.