Which of the following would be the most appropriate use of long-term financing?
A) developing new products
B) paying for speculative production
C) paying salaries
D) purchasing inventory for resale

Question

Quizplus · Accepted Answer

Long-term financing is best suited for investments in the future growth and development of a company, such as developing new products. It is not appropriate for day-to-day expenses such as salaries, and speculative production or inventory purchases may be too risky for long-term financing.

Which of the Following Would Be the Most Appropriate Use