The aggressive financing strategy is risky due to its minimum level of net working capital, high dependency on short-term sources of funds, and the changing short-term interest.

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An aggressive financing strategy implies minimizing the net working capital, relying heavily on short-term sources of funds instead of long-term ones, and taking advantage of fluctuating short-term interest rates. Although this strategy can potentially result in higher profits, it also entails greater financial risk due to the possibility of insufficient liquidity, higher interest costs, and difficulties in financing long-term projects.

The Aggressive Financing Strategy Is Risky Due to Its Minimum