Business organizations always use long-term financing for (both) short-term and long-term needs, but they never use short-term financing for (both) short-term and long-term needs.

Question

Quizplus · Accepted Answer

Business organizations may use short-term financing for short-term needs, but it is not advisable to use it for long-term needs as it may result in higher interest rates and may not provide adequate funds for long-term investments.

Business Organizations Always Use Long-Term Financing for (Both) Short-Term and Long-Term