Clark,president of Cycles Go Go,worries that cash flows may be insufficient to pay his current operating expenses.While he anticipates a surplus of cash inflows as warm weather approaches,he needs to borrow funds now to meet his immediate obligations.Clark can best resolve his cash flow concerns by obtaining ________ financing.

Question

Quizplus · Accepted Answer

Clark needs to borrow funds now to meet his immediate obligations, which indicates a short-term financing need. Short-term financing is typically used to cover operating expenses and is repaid within one year. Intermediate financing is used for larger purchases that will be repaid over one to three years, contingency financing is used for unexpected situations, and long-term financing is used for large capital projects that will be repaid over multiple years.

Clark,president of Cycles Go Go,worries That Cash Flows May Be