Asked by
MinYe Thway
on Dec 07, 2024Verified
Which of the following is true of short-term funds?
A) They are more expensive than long-term funds.
B) They are less risky than long-term funds.
C) They have volatile interest rates.
D) They include equity and exclude current liabilities.
Volatile Interest Rates
Interest rates that fluctuate frequently and unpredictably, often affecting borrowing and saving costs.
Equity
Represents the value of an ownership interest in a company, often expressed as share capital or stock, reflecting the residual interest in the assets of the entity after deducting liabilities.
Current Liabilities
Current liabilities are financial obligations a company owes and is expected to pay within one year or within its operating cycle, whichever is longer.
- Analyze the impact of financial decisions on a company's risk, liquidity, and leverage.
Verified Answer
DA
Learning Objectives
- Analyze the impact of financial decisions on a company's risk, liquidity, and leverage.