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:

Taste Disturbance

A condition in which a person's sense of taste is diminished, altered, or completely absent.

Phenytoin

An anticonvulsant medication used to control certain types of seizures and to prevent seizures following neurosurgery.

Furosemide

A diuretic medication used to treat fluid build-up due to heart failure, liver scarring, or kidney disease.

Glyburide

A medication used to treat type 2 diabetes by stimulating the pancreas to produce more insulin.