A firm with highly unpredictable sales revenue would best choose ________ financing strategy to minimize risk.
A) the aggressive
B) the conservative
C) the trade-off
D) a seasonal

Question

Quizplus · Accepted Answer

A firm with highly unpredictable sales revenue would want to minimize risk, so a financing strategy that is more conservative would be the best choice. This would involve choosing financing options with lower risk such as long-term debt, equity financing, or retained earnings rather than relying on short-term debt or aggressive financing options such as leverage. This strategy would help ensure that the firm has a stable financial base regardless of fluctuations in sales revenue.

A Firm with Highly Unpredictable Sales Revenue Would Best Choose