Financing

Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and increased ownership in the firm which could result in lost control.

Select the appropriate financing term for each funding option.

1. Bank loan of 10 months

multiple choice 1

• short-term financing

• long-term financing

2. Bank loan of 20 months

multiple choice 2

• short-term financing

• long-term financing

3. Bond

multiple choice 3

• short-term financing

• long-term financing

4. Commercial paper

multiple choice 4

• short-term financing

• long-term financing

5. Line of credit

multiple choice 5

• short-term financing

• long-term financing

6. Stock

multiple choice 6

• short-term financing

• long-term financing

7. Trade credit

multiple choice 7

• short-term financing

• long-term financing