Hello all!

I am a non accounting type struggling through a distance-ed Business Finance summer course to complete a business admin diploma. I have a little project here that is asking two questions that I cannot find answers to.

1. What are the implications for a business that finances current assets with operating loans at prime?

2. What are the implications for a business that finances current assets with three-year term loans?

Some guidance would be much appreciated, if you think it's unethical to answer the questions outright for me... any help would be much appreciated. My textbook is just utterly useless.

Thanks
Craig