When Creditors Provide Funds to a Firm, Which of the Following

question 17

Multiple Choice

When creditors provide funds to a firm, which of the following is/are true?

• A)The firm must repay, usually with interest, in specific amounts at specific dates.
• B)Long-term creditors require repayment from the borrower over a period of time that exceeds one year.
• C)One common form of long-term financing is bonds.
• D)Suppliers of raw materials or merchandise that do not require payment for 30 days provide short-term funds.
• E)All of the above are true.