The aggressive financing strategy is a strategy by which the firm finances all projected funds requirements with long-term funds and uses short-term financing only for emergencies or unexpected outflows.

Question

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The definition of the aggressive financing strategy is incorrect. The aggressive financing strategy is a strategy by which the firm finances all or most of its capital needs with debt rather than equity, which can be risky and put the firm in a vulnerable position. This strategy may involve using short-term borrowings to finance long-term projects or acquiring assets with short-term debt.

The Aggressive Financing Strategy Is a Strategy by Which the Firm