Erick's Transition Erick is currently a manager of a small financial planning firm.He is seeking a new career with a large corporation in the banking industry.He recently applied for the financial manager opening at G & T Bank.He is concerned that the transition from his small firm to a large corporation will be difficult.To better prepare himself for this change,he has decided to enroll in a few business classes to strengthen his understanding of corporate finance.The business classes have proven to be a valuable tool for learning the critical skills needed to fully understand a financial plan,equity financing,and debt financing.Erick now believes he has strengthened his competitive advantage in his quest for the job.
-Refer to Erick's Transition.When Erick has to counsel clients on short-term versus long-term financing needs,which of the following should he identify as a short-term financing need?
A) Speculative production
B) Business start-up costs
C) Acquisitions and mergers
D) Replacement of equipment
E) Expansion of facilities

Question

Quizplus · Accepted Answer

Speculative production is typically a short-term financing need as it involves financing the production of goods in anticipation of future sales, which usually occurs over a short period.

Erick's Transition Erick Is Currently a Manager of a Small