Supporting working capital with short-term financing is:
A) inexpensive but risky.
B) conservative but expensive.
C) expensive and risky.
D) conservative and inexpensive.

Question

Quizplus · Accepted Answer

Short-term financing is generally less expensive than long-term financing due to lower interest rates, but it is riskier because it needs to be renewed or rolled over frequently, which can lead to liquidity issues.

Supporting Working Capital with Short-Term Financing Is