The risk to the firm of borrowing using short-term credit is usually greater than if it used long-term debt. Added risk stems from (1) the greater variability of interest costs on short-term than long-term debt and (2) the fact that even if its long-term prospects are good, the firm's lenders may not be willing to renew short-term loans if the firm is temporarily unable to repay those loans.

Answer the following statement true (T) or false (F)


True

Business

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What will be an ideal response?

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If the proceeds from discounting a note receivable are less than the face value of the note, Interest Expense will be debited for the excess of the proceeds over the face value

Indicate whether the statement is true or false

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Three widely used methods of comparing investment alternatives are payback period, net present value, and rate of return on average investment.

Answer the following statement true (T) or false (F)

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The police obtain a search warrant and search Dave's apartment. After yelling obscenities at the officers, Dave confesses to a crime and implicates his friends. The Constitution protects against

a. obscene speech only. b. others' implication only. c. unreasonable searches only. d. obscene speech, others' implication, and unreasonable searches.

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