1. Today, most business loans appear to be variable interest loans. What are the pros and cons of such loans to either lenders or creditors? Please advise.
2. long-term assets are financed by long-term debt; short-term assets by short-term debt. If either gets "mixed-up", issues can arise. Why is this?
3. Long-term financing is used by many organizations and can enhance the ability of the organization to fund capital projects and growth in operations. Options for debt financing could include a long-term bank loan or bonds. Analyze the costs and benefits of debt financing.