The aggressive financing strategy results in the firm financing its short-term needs with___________ funds and its long-term needs with___________ _ funds.
A) long-term; short-term
B) permanent; seasonal
C) short-term; long-term
D) seasonal; permanent

Question

Quizplus · Accepted Answer

The aggressive financing strategy relies on financing short-term needs with short-term funds and long-term needs with long-term funds. This strategy can be risky as it may result in higher interest costs and the possibility of being unable to meet long-term obligations.

The Aggressive Financing Strategy Results in the Firm Financing Its