If the Total Long Term Financing of the Firm Is

question 28

Multiple Choice

If the total long term financing of the firm is greater than the total financing needs for part of the year and less than the needs for some of the year due to seasonal fluctuations, the company will most likely:

• A) hold excess cash.
• B) borrow short term and hold excess cash.
• C) hold excess cash and reduce business activities.
• D) invest in marketable securities and borrow short term.

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Definitions:

Process

A series of actions or steps taken to achieve a particular outcome or to transform inputs into outputs.

Racial Group

A category of people identified by shared physical or social qualities into groups considered by society to be socially significant, often based on characteristics like skin color or ancestry.

Ethnic Group

A collection of people who identify with each other and share a common culture.

Difference

The state or condition of not being the same in some particular way, often emphasizing diversity in social contexts.