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Commerce · Q216

Business Finance

Graduate and Post Graduate · Commerce · question 216

Q216

Financing a long lived assets with short-term financing would be

A.
an example of 'moderate risk-moderate (potential) profitability' assets financing
B.
an example of 'low risk-low (potential) profitability' assets financing
C.
an example of 'high risk-high (potential) profitability' assets financing
Answer
D.
an example of the 'hedging approach' for financing

Answer: Option C

Solution

Answer: Option C
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