The conservative financing strategy results in financing all projected funds requirements with ________ funds and use of ________ funds in the event of an unexpected cash outflow.
A) long-term; short-term
B) short-term; long-term
C) permanent; seasonal
D) seasonal; permanent

Question

Quizplus · Accepted Answer

The conservative financing strategy is one where long-term funds are used to finance all projected funds requirements, and short-term funds are only used in the event of an unexpected cash outflow. This strategy is considered conservative because it prioritizes stability and avoids reliance on short-term borrowing. Therefore, the best choice is A - long-term funds and short-term funds.

The Conservative Financing Strategy Results in Financing All Projected Funds