You work in the finance department of HiTech Inc. The firm’s owner and CEO, Charlie Dollars, is very profit oriented. He understands that short-term interest rates are quite low at the moment, and has suggested that the firm finance all of its working capital needs with short-term loans. The CFO has asked you to prepare a memo for his signature outlining why this may not be the best strategy. In your memo, outline the working capital financing options available to most firms and discuss the trade-offs involved in using long-term versus short-term financing.