Spontaneous Financing Can Take the Form of Current Liabilities or Long-Term

question 182

True/False

Spontaneous financing can take the form of current liabilities or long-term debt.

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Definitions:

Capital Budgeting

The process by which a business evaluates and selects long-term investment projects.

Cash Flows

The total amount of money being transferred into and out of a business, affecting the liquidity and overall financial health of the company.

Capital Budgeting

The process through which a company evaluates and selects long-term investments that are worth more than their cost to pursue.

Long-Term Projects

Long-term projects involve commitments or investments that span several years, focusing on achieving objectives that contribute to a company's growth or development.