Discuss the risks of financing a long-term need with a short-term line of credit.

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Discuss the risks of financing a long-term need with a short-term line of credit.
There is an expression that it is best to operate a business using “other people’s money.” Given that other people’s money is reflected in accounts payable, explain how accounts payable affects the external funds required (EFR).
- Explain whether the expression is correct based on EFR.