Financing Long-Term Projects with Short Term Financing Is Risky Because

question 21

True/False

Financing long-term projects with short term financing is risky because the bank may refuse to renew the short-term loan when it comes due.

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Definitions:

Transformational Innovation

Radical or groundbreaking changes in products, processes, or business models that significantly alter the dynamics of the marketplace or industry.

Incremental Change

Gradual modifications or improvements made over time to processes, products, or systems.

Wheel of Innovation

A conceptual model outlining the cyclical process of innovation, from idea generation through to implementation and market introduction.

Experimenting

The process of carrying out trials or tests to discover, prove, or evaluate the effectiveness or truth of something.