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 involves using a relatively high proportion of short-term debt, which has lower interest rates but must be repaid within a year, and a relatively low proportion of long-term debt, which has higher interest rates but can be repaid over a longer period of time. This approach allows a firm to take advantage of lower interest rates and minimize interest expenses in the short term, but also increases the risk of default if the firm is unable to repay the short-term debt when it comes due.

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