The conservative financing strategy is a strategy by which the 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 financing strategy involves financing permanent requirements with long-term funds and using short-term funds minimally, typically for temporary or seasonal needs.

The Conservative Financing Strategy Is a Strategy by Which the Firm