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Asked by Danielle Woods on May 10, 2024

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Firms often rely on short-term sources of funds to pay for large,permanent assets,such as machinery and buildings.

Short-term Sources

refer to financial resources or loans that are expected to be repaid within a year.

Permanent Assets

Also known as fixed assets; these are long-term resources owned by a business, like property, plant, and equipment, expected to provide value for several years.

Machinery

Machines collectively, especially those used in production or some form of labor.

  • Acquire a deep understanding of the nature and ramifications of multiple sources of corporate finance, particularly trade credit and debt instruments.
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M&
Michael & Angelica NoziskaMay 13, 2024
Final Answer :
False
Explanation :
Firms typically use long-term sources of funding for large, permanent assets to match the asset's life span with the financing term, ensuring financial stability and lower risk. Short-term funding is more commonly used for operational needs and working capital.

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