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Commerce · Q221

Business Finance

Graduate and Post Graduate · Commerce · question 221

Q221

The conservative approach is a risk-free strategy of working capital financing that helps in maintaining a higher level of current assets and higher working capital. Which of the following is consistent with a conservative approach to financing working capital?

A.
Financing short-term needs with short-term funds
B.
Financing short-term needs with long-term debt
Answer
C.
Financing seasonal needs with short-term funds
D.
Financing some long-term needs with short-term funds

Answer: Option B

Solution

Answer: Option B
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