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    Financial Management Principles and Applications Study Set 2
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    Exam 18: Working Capital Management
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    Potential Risks of Using Short-Term Bank Loans for Permanent Assets
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Potential Risks of Using Short-Term Bank Loans for Permanent Assets

Question 49

Question 49

Multiple Choice

Potential risks of using short-term bank loans for permanent assets include


A) higher costs.
B) a loss of flexibility.
C) inability to renew the loans on favorable terms.
D) falling interest rates.

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