A firm with highly unpredictable sales revenue would best choose ____________financing strategy to minimize risk.
A) a seasonal
B) the aggressive
C) the trade-off
D) the conservative

Question

Quizplus · Accepted Answer

A firm with highly unpredictable sales revenue should choose a conservative financing strategy to minimize risks. This strategy involves having a low debt-to-equity ratio and relying on retained earnings and long-term loans instead of issuing stocks or taking on significant loans. A conservative strategy provides financial stability during periods of low sales revenue and ensures the company's sustainability in the long run.

A Firm with Highly Unpredictable Sales Revenue Would Best Choose