Only a firm's permanent financing requirement (and not the seasonal requirement) is financed with ________ in the aggressive funding strategy.
A) long-term debt
B) T-bills
C) retained earnings
D) accounts payable

Question

Quizplus · Accepted Answer

The aggressive funding strategy typically involves financing a firm's permanent financing requirement with long-term debt, which allows the firm to take advantage of lower interest rates and potentially higher leverage. Seasonal requirement would be financed with short-term debt such as T-bills or accounts payable. Retained earnings could also be used for financing but is not specified as the only option in the aggressive funding strategy.

Only a Firm's Permanent Financing Requirement (And Not the Seasonal