![chellybean](/avatars/35051.jpg)
chellybean
07.06.2021 •
Business
Your company has a policy to use long-term debt to finance inventory and receivables.
A. This is a restrictive short-term financing policy
B. This policy has higher carrying cost
C. This policy has higher shortage cost
D. This policy leads to higher default risk
Solved
Show answers
More tips
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
- D Dating, Love, Relationships How Long Can Love Last?...
- A Auto and Moto Mastering One-Movement Parking: All You Need to Know...
- C Computers and Internet How to Properly Order Clothing from International Online Stores...
- H Health and Medicine Headache: A Comprehensive Guide to Treatment...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- A Auto and Moto Discovering the Leader: What is the Most Expensive Car in the World?...
- F Food and Cooking How to Quickly Put your Child to Sleep?...
- C Computers and Internet How to Create a Website for Free and Easy?...
- F Family and Home Parquet or laminate, which is better?...
Answers on questions: Business
- B Business una empresa tiene unos ingresos de 10.000€ y unos gastos de 4.000€.Si debe pagar un 25% de impuestos de sociedades,¿qué cantidad pagará?¿Y si hubiera tenido pérdidas?...
- S Social Studies Acountry s urbanization is measured by such factors as literacy rate, food consumption, and life expectancy. true or false....
- B Biology Which of the following statements regarding the chemical mediators of inflammatory responses is not true? a. they may be secreted by cells residing in the area...
- M Mathematics What is the missing value in this table?...
- M Mathematics Comparing nfl quarterbacks how does aaron rodgers, quarterback for the 2011 super bowl winners, the green bay packers, compare to drew brees, quarterback for the...
- H History Applying main ideas “think globally, act locally.” read the quote and then answer the question below. what does this quote mean? a. people should become actively...
- M Mathematics Answer this plz i am in a big !...
- H Health Sam munches on some almonds. identify the food group to which almonds belong....
- B Biology Which of the following is an adaptation to life on land used by both plants and animals? a. development of fertilization systems that required the organism to return...
- M Mathematics The range in temperature for the month of november in el paso,texas is 44 degrees. if the record high temperature is 92°f then what is the record low temperature...
Ответ:
D. This policy leads to higher default risk.
Explanation:
Financing a company's long term debt by its current assets is risky. Current assets are used to run day to day business operations. If the current assets fall below minimum level the working capital of the firm will decline resulting in risk to business operations continuity.
Ответ: