As a financial manager,you decide to borrow funds in order to meet payroll.Your company will pay back the funds within nine months.You are seeking ________ financing.

Question

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Short-term financing is typically used to meet current obligations such as payroll and is expected to be paid back within one year or less. Long-term financing, on the other hand, typically involves borrowing for a longer period of time, often to fund capital investments. Retained earnings and equity refer to sources of internal funding, while capital is a general term that can refer to either debt or equity financing.

As a Financial Manager,you Decide to Borrow Funds in Order