Certain financing plans are termed conservative when
A) short-term financing is used frequently.
B) working capital is relatively high.
C) working capital is relatively low.
D) risk is increased.

Question

Quizplus · Accepted Answer

Conservative financing plans typically involve maintaining a relatively high level of working capital as a safety net against unforeseen expenses or economic downturns. Short-term financing, low working capital, and increased risk are not typically associated with conservative financing plans.

Certain Financing Plans Are Termed Conservative When