Question

The owner of Mountain Cycle Shop worries that cash flows this winter may be insufficient to meet his current operating expenses. While he anticipates a surplus of cash inflows as warm weather approaches, he needs funds now to meet his immediate obligations. He can best resolve his cash flow concerns by obtaining ________ financing.

Answer 1

short term

Step-by-step explanation:

Whenever there is immediate requirement then cash to be obtained shall be termed as short term.

Short term financing is paid within few weeks, or maximum period of payment extends to 2 - 3 months.

In case of intermediate financing the payment period last up to 15 years.

For all immediate and short term requirements short term financing is made.

In the given instance also, the requirement of Mountain Cycle Shop is short term and instant.

Thus, Correct answer is:

Short Term