Which of the following statements regarding how a firm should finance its cash needs is true?
A) Permanent working capital should be financed by long-term sources of funds, while temporary working capital should be financed by short-term sources of funds.
B) Permanent working capital should be financed by short-term sources of funds, while temporary working capital should be financed by long-term sources of funds.
C) Both permanent working capital and temporary working capital should be financed by short-term sources of funds.
D) Both permanent working capital and temporary working capital should be financed by long-term sources of funds.

Question

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The Answer of Which of the following statements regarding how a firm should finance its cash needs is true?
A) Permanent working capital should be financed by long-term sources of funds, while temporary working capital should be financed by short-term sources of funds.
B) Permanent working capital should be financed by short-term sources of funds, while temporary working capital should be financed by long-term sources of funds.
C) Both permanent working capital and temporary working capital should be financed by short-term sources of funds.
D) Both permanent working capital and temporary working capital should be financed by long-term sources of funds.

Which of the Following Statements Regarding How a Firm Should