All of the Following Are Potential Disadvantages of Short-Term Debt

question 116

Multiple Choice

All of the following are potential disadvantages of short-term debt except:

• A) short-term debt must be paid back more quickly than long-term debt.
• B) uncertainty of interest costs because short-term debt must be replaced often.
• C) a greater risk of illiquidity than long-term debt.
• D) short-term debt generally has a higher interest cost than long-term debt.

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Definitions:

Developmental Psychology

The scientific study of how and why human beings change over the course of their life, from infancy to old age.

Complex Speech

Speech that exhibits advanced structure, vocabulary, and ideas, often indicative of higher-level cognitive processing and linguistic proficiency.

Language Development

The process by which individuals acquire the ability to perceive, produce and use words to understand and communicate.

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