If a company secures a three-year bank loan, this is considered
A) short-term financing.
B) asset funding.
C) liability funding.
D) long-term financing.

Name: If a company secures a three-year bank loan, this is considered A) short-term financing. B) asset funding. C) liability funding. D) long-term financing.
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Question

Quizplus · Accepted Answer

The fact that the bank loan is secured for a period of three years indicates that it is a long-term financing option, as it is not expected to be paid back in the short-term.

If a Company Secures a Three-Year Bank Loan, This Is