Accounting · Business Loans

Read the following statements carefully: Statement 1: Term loans are typically used for long-term investments such as purchasing property, equipment, or expanding operations. Statement 2: Short-term loans have repayment periods of less than 1 year and are used to finance immediate operational needs like covering seasonal expenses or managing cash flow gaps. Statement 3: Long-term loans are primarily used for funding temporary working capital needs, not for purchasing large assets or funding capital expenditures.