Short-term self-liquidating loans are intended to
A) finance capital assets.
B) cover seasonal peaks in financing caused by inventory and receivables buildup.
C) finance merger and/or acquisition activity.
D) recapitalize the firm.

Question

Quizplus · Accepted Answer

Short-term self-liquidating loans are designed to cover temporary financing needs as a result of inventory and receivables buildup. They are ideal for financing seasonal fluctuations in the company's cash flow. Option A, C, and D doesn't fit the description of short-term self-liquidating loans.

Short-Term Self-Liquidating Loans Are Intended to