Which situation would normally involve long-term financing? multiple choice expanding current inventory paying workers' salaries funding unanticipated emergencies purchasing production equipment

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25-07-2022
Business

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Which situation would normally involve long-term financing? multiple choice expanding current inventory paying workers' salaries funding unanticipated emergencies purchasing production equipment

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ogorwyne ogorwyne · Answer 1 · 2022-07-28T18:46:09+02:00

The situation that would involve long term financing would be purchasing production equipment.

What is long term financing?

This is the term that is used to refer to the type of expenses that are preplanned over a long period of time before they are carried out.

These are unlike the other types that may involve one to carry out expenses immediately like in the case of emergencies.

When new production equipment are needed, the person would have to plan for it for a period of time before they would go ahead to carry out the purchase of the product.

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