The risk of conservative financing requirements is low because of its high level of net workingcapital, and the fact that the strategy does not require the firm to use any of its limited short-term borrowing capacity.

Question

Quizplus · Accepted Answer

The statement accurately reflects the low risk associated with conservative financing requirements, as they typically rely on a strong net working capital position and avoid using short-term borrowing.

The Risk of Conservative Financing Requirements Is Low Because of Its