The aggressive financing strategy is risky in two aspects: a firm operates with a possibility of ________, and a firm has only a limited amount of ________ capacity.
A) insolvency; short-term borrowing
B) interest rate swings; short-term borrowing
C) low earnings; long-term borrowing
D) fixed interest rate; long-term borrowing

Question

Quizplus · Accepted Answer

A firm operates with a possibility of insolvency and has only a limited amount of short-term borrowing capacity.

The Aggressive Financing Strategy Is Risky in Two Aspects: a Firm