All of the following are uses of long-term financing EXCEPT which one?
A) replacing obsolete equipment
B) eliminating immediate cash-flow problems
C) beginning a new business
D) executing mergers and expansions

Question

Quizplus · Accepted Answer

Long-term financing is used for purposes such as replacing obsolete equipment, beginning a new business, and executing mergers and expansions. However, it is not used for eliminating immediate cash-flow problems, as it is not a short-term solution for immediate liquidity needs. Short-term financing options such as lines of credit and factoring are more appropriate for addressing immediate cash-flow problems.

All of the Following Are Uses of Long-Term Financing EXCEPT