What is one of the advantages of short-term debt financing.

A) Firms can obtain short-term credit more quickly than long-term credit.
B) Firms can obtain long-term more quickly than short-term credit.
C) Firms can obtain short-term credit to pay preferred dividends in the short-run.
D) Firms can obtain short-term credit to from accounts receivable in the short-run at cheaper rates.

Question

Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  Short-term debt financing allows firms to obtain credit more quickly than long-term financing, which can be beneficial in situations where immediate funding is needed. This can help businesses take advantage of time-sensitive opportunities, respond to unexpected expenses, and manage cash flow fluctuations.

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