--%>

Describe risks related with using short-term financing

Describe risks related with using a large amount of short-term financing for working capital?
By using a large amount of short-term financing usually allows funds to be raised at a lower cost however raise the firm's risk.

   Related Questions in Finance Basics

  • Q : None what are the disadvantages of

    what are the disadvantages of working capital

  • Q : Emergency Banking Act What did the

    What did the Emergency Banking Act do?

  • Q : Why coefficient of variation is better

    Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va

  • Q : Calculating the location in assessing

    Normal 0 false false

  • Q : Describe demand factor Normal 0 false

    Normal 0 false false

  • Q : Explain Financial Reporting Financial

    Financial Reporting: It is a set of documents made generally by government agencies at the end of accounting period. It usually enclose summary of accounting data for that time period, with background forms, notes, and other information.

  • Q : Financial Account & International fund

    Question: The Financial Account captures international fund flows due to i._____. ii. Briefly Explain? Answer: (i)    Purchase and selling of assets (ii)   The Financial Account captures th

  • Q : Define Budget Budget : It is a plan of

    Budget: It is a plan of operation stated in terms of financial or other resource necessities for a particular period of time.

  • Q : Describe risk aversion Describe risk

    Describe risk aversion? Risk aversion is the tendency to ignore additional risk. Risk-averse people will ignore risk if they can, unless they attain additional compensation for letting that risk. In finance, the added compensation is a higher ex

  • Q : Define Workload Workload : The

    Workload: The measurement of rises and reduces of inputs or demands for work, and an ordinary basis for projecting related budget requires for both established and new programs. This approach to BCPs is frequently viewed as an alternative to outcome o