Back to Assignment Attempts Average / 1 2. Current asset policy There are pros and cons to using short-term and long-term financing. A firm's corporate culture and specific situation will drive its decision to use one type over another. In the following table select which type of financing a firm is more likely to choose, given its situation. Short-Term Debt Long-Term Debt A firm wants to be able to predict its interest costs. O A firm wants to avoid restrictive loan covenants. O A firm has seasonal borrowing needs. O O