Which of the Following Is a Disadvantage of Long-Term Loans

Multiple Choice

Which of the following is a disadvantage of long-term loans?

A) They cannot provide substantial sums of money to businesses.
B) They require diluting ownership in organizations.
C) They are available to firms with a weak credit rating.
D) Such loans can restrict the way an organization uses its assets.
E) Not all companies can qualify for loans and acceptable terms.