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Commerce · Q37

Business Finance

Graduate and Post Graduate · Commerce · question 37

Q37

Which of the following statements is most correct?

A.
For small companies, long-term debt is the principal source of external financing
B.
The current assets of the typical manufacturing firm account for over half of its total assets
Answer
C.
Strict adherence to the maturity matching approach to financing would call for all current assets to be financed solely with current liabilities
D.
Similar to capital structure management, working capital management requires the financial manager to make a decision and not address the issue again for several months

Answer: Option B

Solution

Answer: Option B
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