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.
A)low, high
B)relatively high, relatively low
C)high interest, low interest
D)none of these

Question

Quizplus · Accepted Answer

The aggressive approach to financing current assets involves using a relatively high proportion of short-term debt and a relatively low proportion of long-term debt. This approach carries higher risk due to the dependence on short-term financing, but can also lead to higher returns. Option A contradicts the definition of an aggressive approach, as it suggests using a low proportion of short-term debt. Option C is incorrect, as it refers to the interest rates on debt rather than the proportion of debt used. Option D is not the correct answer as there is a correct option, which is option B.

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