In the aggressive financing strategy, a firm anticipating a large increase in sales should finance the increase in working capital with
A) the sale of common stock.
B) the sale of a bond issue.
C) a line of credit.
D) a long-term note from the bank.

Question

Quizplus · Accepted Answer

A line of credit provides flexibility and can be drawn upon as needed, making it a suitable option for financing an anticipated increase in working capital. Selling common stock or issuing a bond may not be necessary for short-term financing needs, and taking on a long-term note from the bank may not be the most cost-effective solution.

In the Aggressive Financing Strategy, a Firm Anticipating a Large