A company needs to purchase networking equipment every month to fulfill project hardware requirements.

Which type of financing does it need? - Trade credit - Accounts receivable - Inventory - Bank loan

A company plans to expand into new sales territories and decides to obtain a long-term loan. What is an advantage of long-term financing? - Lowers leverage by paying more interest - Increases stockholder ownership - The interest is tax deductible - Creditors prefer companies with lower equity levels

A company evaluates the risk of signing a five-year financial lease agreement for a large server. What is the implication of this type of lease on the lessee? - The servers lease term is less than its economic life. - The server must appear on the lessees balance sheet. - The lessee is not responsible for insuring the server. - The lessee cannot claim depreciation on the server.