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The Aggressive Financing Strategy Is Risky in Two Aspects: a Firm

Question 111

Multiple Choice

The aggressive financing strategy is risky in two aspects: a firm operates with a possibility of ________,and an inability to engage in ________ when needed.


A) insolvency; short-term borrowing
B) interest rate swings; short-term borrowing
C) low earnings; long-term borrowing
D) fixed interest rate; long-term borrowing

Correct Answer:

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