[Solved] Which of the following would be consistent with an aggressive approach to financing working capital?

McqMate

Q.	Which of the following would be consistent with an aggressive approach to financing working capital?
A.	financing short-term needs with short-term funds.
B.	financing permanent inventory buildup with long-term debt.
C.	financing seasonal needs with short-term funds.
D.	financing some long-term needs with short-term funds.
Answer» D. financing some long-term needs with short-term funds.

1.6k

0

Do you find this helpful?

16

View all MCQs in

Working Capital Management

Discussion

No comments yet

Related MCQs

Which of the following would be consistent with a conservative approach to financing working capital?
-Which of the following would be consistent with a hedging (maturity matching) approach to financing working capital?
-Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes total assets to fall below the total longterm financing?
-Which of the following statements is correct for a conservative financing policy for a firm relative to a former aggressive policy?
Which of the following statements is correct for an aggressive financing policy for a firm relative to a former conservative policy?
If a company moves from a "conservative" working capital policy to an "aggressive" policy, it should expect __________.
Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate form for financing a new capital investment in plant and equipment?
Working Capital Turnover measures the relationship of Working Capital with:
Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non- spontaneous form for financing the excess seasonal current asset needs?
What are the aspects of working capital management?