If a company prefers to finance its required assets with a small portion of short-term borrowings,then that firm is utilizing a(n)

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A company that finances its assets with a small portion of short-term borrowings is taking a conservative financing strategy. This is because short-term borrowings come with higher risk and uncertainty, and relying heavily on them could leave the company vulnerable to interest rate fluctuations, credit shortages, and cash flow mismatches. By using a small portion of short-term borrowings, the company is mitigating some of these risks while still taking advantage of the lower cost of debt compared to equity or long-term debt.

If a Company Prefers to Finance Its Required Assets with a Small