Factors Influences That Affect the Selection of a Short-Term Financing

question 25

Multiple Choice

Factors Influences that affect the selection of a short-term financing strategy include:

• A)cost
• B)flexibility
• C)qualitative factors
• D)all the above

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Definitions:

SOX

Refers to the Sarbanes-Oxley Act of 2002, a United States federal law that set new or expanded requirements for all U.S. public company boards, management and public accounting firms, aiming to protect investors from fraudulent financial reporting.

Public Accounting Firms

Professional services organizations that provide accounting, audit, tax, and consulting services to businesses and individuals.

Real Risk-free Rate

The rate of return on an investment with no risk of financial loss, adjusted for inflation.

Federal Reserve

The central banking system of the United States, responsible for implementing monetary policy, regulating banks, and ensuring financial stability.