Question

An entrepreneur mayfinance fixed assets by:

a. Inventoryloans

b. Installmentloans

c. Short-termdebt

d. Long-termdebt

Answer 1

C - Short-term debt

Step-by-step explanation:

Asset financing refers to using the company's fixed assets as leverage/collateral to borrow money through a loan. It is always used to address short-term capital requirements and would therefore be best done through short-term debt.