Long-term and short-term finance tends to be differentiated by:

Question

Quizplus · Accepted Answer

Long-term and short-term finance are categorised based on the period of time for which the finance is borrowed or invested. Short-term finance is typically repaid within a year, while long-term finance has a repayment period longer than a year. The amount of finance, whether it is debt or equity, or whether it is internal or external is not the differentiating factor between long-term and short-term finance.

Long-Term and Short-Term Finance Tends to Be Differentiated By