Which Is Not a Risk of Short-Term Financing

question 107

Multiple Choice

Which is not a risk of short-term financing?

• A)infrequent renewals ?????
• B)borrowing costs may rise if short-term interest rates increase
• C)bank may not renew loan
• D)all the above
• E)none of the above

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Definitions:

Corporate Opportunity

A legal doctrine that prohibits directors, officers, and controlling shareholders of a corporation from taking a business opportunity for themselves that rightfully belongs to the corporation.

Canada Business Corporations Act

A Canadian federal statute that governs the incorporation, governance, and dissolution of companies in Canada.

Derivative Action

An action taken by a shareholder in a corporation's name to enforce the corporation's rights when the corporation fails to do so itself.

Directors' Duty

The responsibility of the board of directors to act in the best interests of the company, including duties of care, loyalty, and obedience to the law.