Short-term financing is particularly important with respect to the management of the cash inflow and outflow.

Question

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Short-term financing helps businesses to manage their cash flow by providing immediate access to funds to cover expenses or take advantage of opportunities, without having to wait for long-term financing to come through. This can be crucial for businesses that need to make investments or pay bills in a timely manner, and can help to avoid cash flow problems that can negatively impact operations.

Short-Term Financing Is Particularly Important with Respect to the Management