Potential Risks of Using Short-Term Bank Loans for Permanent Assets

question 49

Multiple Choice

Potential risks of using short-term bank loans for permanent assets include

• A) higher costs.
• B) a loss of flexibility.
• C) inability to renew the loans on favorable terms.
• D) falling interest rates.

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Definitions:

W-4 Form

A tax form used by employees to indicate their tax situation to their employer, such as number of dependents and marital status, affecting the amount of federal income tax withheld from their pay.

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A federal payroll tax that funds Medicare, the U.S. health insurance program for individuals aged 65 and over or who meet other specific criteria.

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