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A negative feature of defining investment by excluding the portion of total assets employed that are financed by short-term creditors is

A negative feature of defining investment by excluding the portion of total assets employed that are financed by short-term creditors is
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Multiple Choice

A negative feature of defining investment by excluding the portion of total assets employed that are financed by short-term creditors is

            a.         current liabilities are sometimes difficult to define.

            b.         short-term debt is always more expensive to finance than long-term debt.

            c.         this method encourages managers to use an excessive amount of short-term debt.

            d.         this method encourages managers to use an excessive amount of long-term debt.

 

FILE: MS WORD

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