In theory, the conservative financing strategy ignores ________.
A) all current liabilities
B) the spontaneous forms of short-term financing
C) all current assets
D) the high risk associated with external financing

Question

Quizplus · Accepted Answer

The conservative financing strategy emphasizes relying on long-term financing sources and minimizing the use of short-term financing, including spontaneous forms like trade credit and accounts payable. It does not ignore current liabilities or current assets, nor does it necessarily consider the risk associated with external financing.

In Theory, the Conservative Financing Strategy Ignores ________