Industry characteristics can affect whether the firm chooses an aggressive, conservative, or maturity matching strategy for financing its assets.

Question

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Industry characteristics such as the stability of demand, the level of competition, and the availability of financing options can influence a firm's decision to adopt a certain financing strategy. For example, firms in rapidly growing industries may choose an aggressive financing strategy to fund high levels of investment in fixed assets, while those in mature industries may prefer a conservative or maturity matching approach to minimize risk.

Industry Characteristics Can Affect Whether the Firm Chooses an Aggressive