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What are the disadvantages of using short-term notes for short-term financing purposes?

User AKHolland
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Final answer:

Using short-term notes for short-term financing purposes may have disadvantages such as difficulty in conducting long-term assessments, scheduled interest payments, and potentially higher interest rates.

Step-by-step explanation:

Using short-term notes for short-term financing purposes may have several disadvantages. One drawback is that it can make it difficult for a firm to conduct long-term need and asset assessments to plan for long-term programming and impact. Another disadvantage is that the firm commits to scheduled interest payments, whether or not it has sufficient income. Additionally, short-term notes may involve higher interest rates compared to other financing options.

User Seh
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