Financing
Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and increased ownership in the firm which could result in lost control.
Select the appropriate financing term for each funding option.
1. Bank loan of 10 months
multiple choice 1
short-term financing
long-term financing
2. Bank loan of 20 months
multiple choice 2
short-term financing
long-term financing
3. Bond
multiple choice 3
short-term financing
long-term financing
4. Commercial paper
multiple choice 4
short-term financing
long-term financing
5. Line of credit
multiple choice 5
short-term financing
long-term financing
6. Stock
multiple choice 6
short-term financing
long-term financing
7. Trade credit
multiple choice 7
short-term financing
long-term financing