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"John's Café may use long-term financing for all of the following reasons except a. beginning a new business. b. executing mergers and expansions. c. eliminating immediate cash-flow problems. d. replacing obsolete equipment."

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Final answer:

John's Café would not typically use long-term financing to eliminate immediate cash-flow problems, as these are usually addressed with short-term financing solutions.

Step-by-step explanation:

John's Café may use long-term financing for a variety of reasons to support its growth and operations. However, among the options provided, long-term financing would not typically be used for c. eliminating immediate cash-flow problems. Long-term financing options, such as issuing bonds or selling stock, are generally used for significant investments like a. beginning a new business, b. executing mergers and expansions, or d. replacing obsolete equipment, which yields returns over a longer period. Immediate cash-flow issues are normally resolved through short-term financing options because the commitment to long-term repayments could be onerous if the cash-flow problem is not resolved quickly.

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