Which of the following are the three reasons that firms need short-term financing?

Question

Quizplus · Accepted Answer

C) Negative cash flow shocks, positive cash flow shocks, and seasonalities are the three reasons firms need short-term financing. Negative cash flow shocks require firms to find financing to cover unexpected shortfalls, positive cash flow shocks might necessitate financing to take advantage of unexpected opportunities, and seasonalities in business cycles often require firms to adjust their financing needs according to the seasonal demand for their products or services.

Which of the Following Are the Three Reasons That Firms