Which of the following assets would a firm most likely finance using long-term sources?
A)Inventory
B)Accounts receivable
C)Marketable securities
D)Another company

Question

Quizplus · Accepted Answer

Financing the acquisition of another company typically involves a significant investment that is expected to provide returns or benefits over a long period. Therefore, it is most likely to be financed through long-term sources such as long-term loans, issuing bonds, or equity financing to ensure the repayment period aligns with the asset's benefit period.

Which of the Following Assets Would a Firm Most Likely