Disadvantages of Using Current Liabilities as Opposed to Long-Term Debt

question 141

Multiple Choice

Disadvantages of using current liabilities as opposed to long-term debt include

• A) greater risk of illiquidity.
• B) uncertainty of interest costs.
• C) higher cash flow exposure.
• D) both A and B.

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Definitions:

Political Savvy

Political savvy is knowing how to negotiate, persuade, and deal with people regarding goals they will accept.

Political Environments

Refers to the political context within which an organization operates, including laws, government policies, and the influence of political actors.

Association Power

The influence or impact derived from being part of or connected to a certain group, organization, or network.

Connection Power

The influence one possesses due to their network and relationships, facilitating the ability to leverage social ties for resources or information.