A Firm Can Reduce Net Working Capital by Substituting Long-Term

question 48

True/False

A firm can reduce net working capital by substituting long-term financing, such as bonds, with short-term financing, such as a one-year notes payable.

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Definitions:

Statistical Value

A single measure, often derived from a set of data, that summarizes or represents the characteristics of that data.

Contributing Factor

An element or circumstance that plays a significant role in leading to a particular outcome or result.

Lieutenant Governor

A state government official in the United States who is second in command to the governor and may act as governor in their absence or if the governor's position becomes vacant.

Campaign Speech

A speech given by a candidate during an electoral campaign to promote their candidacy, communicate their platform, and persuade voters.