The ____ says the term of financing should match the duration of the item or project supported.
A)time value principle
B)Peter principle
C)working capital principle
D)maturity matching principle

Question

Quizplus · Accepted Answer

The maturity matching principle states that the term of financing should match the duration of the item or project supported. This principle helps to ensure that the cash inflows from the project are sufficient to cover the financing costs and repay the loan within the required timeframe. It also helps to minimize the risk of refinancing or default.

The ____ Says the Term of Financing Should Match the Duration