which of the following statements accurately describes short - term financing? a.) the amount a business…

which of the following statements accurately describes short - term financing? a.) the amount a business needs to borrow is typically smaller than with long - term financing. b.) short - term financing typically requires a business to pay the money back in up to 5 years. c.) short - term financing is typically more difficult to obtain than long - term financing. d.) the short repayment period is typically more risky for a lender.

which of the following statements accurately describes short - term financing? a.) the amount a business needs to borrow is typically smaller than with long - term financing. b.) short - term financing typically requires a business to pay the money back in up to 5 years. c.) short - term financing is typically more difficult to obtain than long - term financing. d.) the short repayment period is typically more risky for a lender.

Answer

Brief Explanations:

Short - term financing usually addresses immediate or near - term needs, so the borrowing amount is often smaller compared to long - term financing which is for larger, long - term projects. Short - term financing is typically paid back within a year, not up to 5 years. It is generally easier to obtain than long - term financing as the risk exposure for the lender is for a shorter time. And the short repayment period is less risky for a lender as they get their money back quickly.

Answer:

A. The amount a business needs to borrow is typically smaller than with long - term financing.