Long-term financing should be used to do which of the following?
A) Pay for speculative production
B) Purchase inventory for resale
C) Pay salaries
D) Pay utilities
E) Develop new products

Question

Quizplus · Accepted Answer

Long-term financing should be used for investments that generate returns over an extended period of time, such as developing new products. Financing short-term expenses like salaries, utilities, and inventory for resale should be covered with short-term financing. Financing speculative production, which involves a high degree of uncertainty, is generally not a suitable use of long-term financing.

Long-Term Financing Should Be Used to Do Which of the Following