The aggressive approach to the financing of a firm's current assets uses a ____ proportion of short-term debt and a ____ proportion of long-term debt.
A)low, high
B)relatively high, relatively low
C)high interest, low interest
D)None of the above

Question

Quizplus · Accepted Answer

The aggressive approach to financing current assets involves using a relatively high proportion of short-term debt and a relatively low proportion of long-term debt. This approach increases the firm's financial risk but can also result in higher profitability due to lower interest expenses.

The Aggressive Approach to the Financing of a Firm's Current