The aggressive approach to the financing of a firm's current assets uses a ____ proportion of short-term debt and a ____ proportion of long-term debt.

Question

Quizplus · Accepted Answer

The aggressive approach to financing current assets utilizes a higher proportion of short-term debt, which is riskier but also potentially more profitable, and a lower proportion of long-term debt, which is more stable but also potentially less profitable. Therefore, Option B, which indicates a relatively high proportion of short-term debt and a relatively low proportion of long-term debt, is the correct answer.

The Aggressive Approach to the Financing of a Firm's Current