Question $($S$)$

Under what circumstances would it be appropriate to use long$-$term debt to fund current assets?

When there are large seasonal strings in domand and management need to be sure that funding

will be avaliable

When ourtent assets comprise high value items that can be used as security against the loan.

When there is certain perfmanent amount of current assets with little seasonality that require

financing

When the business has intule use for fred assets, allowing them to use long$-$term debt that is not

required to finance fived assets.