--%>

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 : Explain Department of Finance

    Department of Finance (Finance): The Director of Finance functions as the Governor’s chief fiscal policy advisor with the emphasis on financial integrity of the state. Finance is delegated the accountability for preparation of the Governor's Bud

  • Q : Describe the role of cash and of

    Describe the role of cash and of earnings while a corporation is deciding how much, if any, cash dividends to pay to common stockholders. In the long-run earnings are essential to maintain dividend payments; however at the time an actual dividen

  • Q : What are A-pages A-pages : An ordinary

    A-pages: An ordinary reference to the Governor's Budget synopsis. The Budget highlights now contained in the Governor's Budget synopsis were just once contained in front of the Governor's Budget on pages A-1, A-2, and so on, and were,

  • Q : How would the market price of a bond be

    All other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually rather than annually?Most of bonds issued in the United States pay interest semiannually (twice per year). Alo

  • Q : Define Sponsor Sponsor : It is an

    Sponsor: It is an individual, group, or organization which initiates or brings to a Legislator's attention a proposed law modification.

  • Q : What is Debt Financing Debt Financing :

    Debt Financing: Whenever a firm raises money for the working capital or capital expenses by selling bonds, bills, or notes to individual and or institutional investors. In return for lending money, the individuals or institutions become creditors and

  • Q : Determine the level of real output in

    Normal 0 false false

  • Q : What is Shared Revenue Shared Revenue:

    Shared Revenue: It is a state-imposed tax, like the gasoline tax, that is shared with the local governments in proportion, or significantly in proportion, to the amount of tax collected or generated in each local unit. The tax might be collected eithe

  • Q : Fin 235 Personal Finance Homework Fin

    Fin 235 Personal Finance Homework Chapter 8: Problems: 1, 3, 5, 7 1.   Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If a family

  • Q : Equilibrium level of aggregate

    Normal 0 false false