Why Might a Portion of Working Capital Be Funded with Long-Term

question 120

Multiple Choice

Why might a portion of working capital be funded with long-term debt?

• A)Because it is considered temporary working capital.
• B)Because working capital encompasses some fixed assets which tend to be long-term investments.
• C)Because of beneficial tax breaks on the interest paid on long-term debt.
• D)Because it is considered permanent working capital.

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