Which statement is correct?$41$Multiple Choice$800\mathrm{.}58\mathrm{.}22$ReterencesA firm is less apt to face financial distress if it adopts a flexible financial policy rather than a restrictive policy.Firms that follow restrictive financial policies can generally avoid short$-$term debt financingFirms should generally finance all of their assets with long term debt.Short$-$term borrowing is generally more expensive than long$-$term borrowing.Long$-$term interest rates tend to be more volatile than short$-$term