Generally,more use is made of short-term financing because:

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Short-term financing is generally preferred because short-term interest rates are lower than long-term interest rates, making it cheaper to obtain financing in the short term. Additionally, short-term financing can provide more flexibility for firms in managing their cash flow and changing business needs. However, it is important for firms to balance their use of short-term financing with long-term financing to maintain financial stability and avoid excessive reliance on short-term debt.

Generally,more Use Is Made of Short-Term Financing Because