Selection of a source of short-term financing should include all of the following EXCEPT
A) the effective cost of credit.
B) the availability of financing in the amount and for the time needed.
C) the floatation costs for debentures.
D) the effect of the use of credit from a particular source on the cost and availability of other sources of credit.

Question

Quizplus · Accepted Answer

The selection of a source of short-term financing should consider the effective cost of credit, the availability of financing, and the impact on the cost and availability of other sources of credit. However, the floatation costs for debentures are not relevant to short-term financing, as debentures are long-term debt instruments.

Selection of a Source of Short-Term Financing Should Include All