Question: Question 18 V FLAG QUESTION (1 Mark) A firm borrows long-term from a bank and uses the loan proceeds to acquire production equipment. At this

Question 18 V FLAG QUESTION (1 Mark) A firm borrows long-term

Question 18 V FLAG QUESTION (1 Mark) A firm borrows long-term from a bank and uses the loan proceeds to acquire production equipment. At this point Answers A-D A the firm's ability to pay suppliers is reduced B the firm's ability to pay suppliers is increased the firm's ability to pay suppliers is unaffected. D the firm's ability to pay suppliers will depend on its ability to repay the loan

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