A Negative Feature of Defining Investment by EXCLUDING the Portion

Multiple Choice

A negative feature of defining investment by EXCLUDING the portion of total assets employed that are financed by short-term creditors is that:

A) current liabilities are sometimes difficult to define
B) short-term debt is always more expensive to finance than long-term debt
C) this method encourages managers to use an excessive amount of short-term debt
D) this method encourages managers to use an excessive amount of long-term debt