One major risk a firm assumes in an aggressive financing strategy is ________.
A) the possibility that collections will be slower than expected
B) the possibility that long-term funds may not be available when needed
C) the possibility that short-term funds may not be available when needed
D) the possibility that it will run out of cash

Question

Quizplus · Accepted Answer

An aggressive financing strategy typically involves relying more on short-term financing to take advantage of lower interest rates or other favorable conditions. This approach carries the risk that short-term funds may not be available when needed, due to market conditions or changes in the firm's creditworthiness.

One Major Risk a Firm Assumes in an Aggressive Financing