There Is More Risk Associated with Short-Term Debt Than Long-Term

question 75

Multiple Choice

There is more risk associated with short-term debt than long-term debt because of:

• A)uncertainty arising from interest rate fluctuations.
• B)the risk of being unable to refund the debt.
• C)relatively high cost of short-term debt.
• D)a and b

---

Definitions:

Coefficient

A numerical value or constant that defines the relationship between two variables in mathematical equations or models, indicating how one variable changes in relation to another.

Repetitions

The action of repeating something, such as an exercise or task, multiple times to improve proficiency, strength, or conditioning.

Time Per Unit

The average amount of time required to produce one unit of a product or service.

Learning Curves

A concept that illustrates how the time taken to complete a task decreases with an increasing number of trials or experiences, due to the increase in efficiency and skill.