Cash flows from operations may not be sufficient for a firm to keep up with...
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Finance
Cash flows from operations may not be sufficient for a firm to keep up with growthrelated financing needs, or the firm may not be able to a generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of st financing or longterm financing. Both methods have their advantages and disadvantages.
The following statement identifies a possible characteristic of shortterm financing.
Consider this case:
Shortterm credit agreements are more restrictive than longterm credit agreements.
Identify whether the preceding statement is true or false.
This statement is false.
This statement is true.
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