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A Conservatively Financed Firm Would

Question 39

Multiple Choice

A conservatively financed firm would:


A) use long-term financing for all capital assets and short-term financing for all other assets.
B) finance a portion of permanent assets and short-term assets with short-term debt.
C) use equity to finance capital assets,long-term debt to finance permanent assets,and short-term debt to finance fluctuating current assets.
D) use long-term financing for permanent assets and capital assets and a portion of the short-term fluctuating assets and use short-term financing for all other short-term assets.

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