Short-Term Borrowing Differs from Spontaneous Sources in Each of the Following

question 16

Multiple Choice

Short-term borrowing differs from spontaneous sources in each of the following ways EXCEPT:

• A)it is an indirect way of getting funds
• B)it has an explicit cost,including a commitment fee at times
• C)it must be deliberately acquired by the company
• D)it is a direct way of getting funds

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Definitions:

Forecasting Method

A set of statistical tools and techniques used to predict future events based on historical data and trends.

Large Deviations

Significant departures from the mean or median of a distribution, often indicating outliers or unusual variability in a dataset.

Large Errors

Significant deviations between observed values and those predicted or expected, often indicating a model's lack of fit.

Autoregressive Model

A type of statistical model that predicts future values based on past values of the variable, often used in time series analysis.