Question

Which of the following are advantages of short-term financing (as compared to long-term financing)?

Loans can be obtained faster.
The interest rate on borrowed funds is generally lower.
Interest costs are relatively stable over time.
Answers a. and b. are both correct.
Answers a., b., and c. are all correct.

Answer 1

Answers a. and b. are both correct which shows the advantages of short-term financing (as compared to long-term financing).

Step-by-step explanation:

The short term financing have includes less compliance, less interest rate, contain lesser amount, speedy transactions ,and lesser time period whereas the long term financing includes more compliance, large amounts, large time period.

Thus, a. and b. are both correct which shows the advantages of short-term financing (as compared to long-term financing)