The conservative funding strategy is a strategy by which a firm finances at least its seasonal requirements, and possibly some of its permanent requirements, with short-term funds and the balance of its permanent requirements with long-term funds.

Question

Quizplus · Accepted Answer

The conservative funding strategy involves financing both seasonal and permanent requirements with long-term funds, minimizing the risk of relying on short-term funds.

The Conservative Funding Strategy Is a Strategy by Which a Firm