Firms often rely on short-term sources of funds to pay for large,permanent assets,such as machinery and buildings.

Name: Firms often rely on short-term sources of funds to pay for large,permanent assets,such as machinery and buildings.
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Firms typically use long-term sources of funding for large, permanent assets to match the asset's life span with the financing term, ensuring financial stability and lower risk. Short-term funding is more commonly used for operational needs and working capital.

Firms Often Rely on Short-Term Sources of Funds to Pay