Question: A main disadvantage that involves financing with current liabilities is that: The interest rates of short-term financing are generally higher than the rates of long-term

A main disadvantage that involves financing with current liabilities is that: 

The interest rates of short-term financing are generally higher than the rates of long-term financing. 

Short-term financing is less flexible since it must be paid more frequently. 

Short-term financing points to uncertainty regarding interest costs from year to year. 

All of the above




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