In theory, the conservative financing strategy ignores

Question

Quizplus · Accepted Answer

The conservative financing strategy prioritizes long-term financing sources and avoids spontaneous forms of short-term financing, such as trade credit or overdraft facilities. Therefore, it does not ignore current assets or current liabilities, but rather chooses to finance them through less risky sources. The high risk associated with this strategy is actually addressed through its conservative approach.

In Theory, the Conservative Financing Strategy Ignores