Supporting working capital with long-term financing is:
A)risky, but inexpensive.
B)conservative, but expensive.
C)expensive and risky.
D)conservative and inexpensive.

Question

Quizplus · Accepted Answer

Supporting working capital with long-term financing is considered conservative because it reduces the risk of not being able to meet short-term obligations. However, it is more expensive due to higher interest costs associated with long-term debt compared to short-term financing options.

Supporting Working Capital with Long-Term Financing Is