Long-term financing is usually less expensive than short-term financing because it is not as advantageous to the corporation as short-term financing.

Question

Quizplus · Accepted Answer

This statement is false. Long-term financing is generally more expensive than short-term financing as it involves a higher risk for the lender over an extended period of time. Additionally, long-term financing often involves interest payments and other fees that accumulate over time, further increasing the overall cost.

Long-Term Financing Is Usually Less Expensive Than Short-Term Financing Because