Read the text and the statements below. Decide which statements are true.
Money has been called the "lifeblood of any business". All firms – whether they are based in the public sector or in the private sector – require capital to start a business and to grow.
Firms will have to meet short-term debts, which come from trading activities such as buying goods on credit. This short-term finance is a firm’s working capital. Any business which has a lack of working capital will face difficulties in surviving. It will not be able to take advantage of cost-saving discounts, since it does not have the cash available, and its creditors will be demanding payment of the money they are owed by the firm. In this last instance, they could take legal action to recover the amount owed by the firm, forcing it to close down and sell off its assets to get the required money.
Firms also need long-term capital, in order to expand. There are many sources of long-term capital: personal savings of sole traders and limited company shares are two well-known examples of such sources. Without sufficient capital, firms will find it impossible to grow.

Which statements are true?
A. Any kind of business needs long-term capital.
B. Any kind of business needs short-term capital.

• Both A and B are true.
• Statement A is true.
• Statement B is true.