A short-term funding strategy calls for all seasonal working capital and a portion of the permanent working capital and fixed assets to be funded with short-term debt.

Question

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Short-term funding strategy typically involves using short-term debt to fund seasonal working capital needs and a portion of permanent working capital and fixed assets. This allows for flexibility and easier management of cash flow, and the debt can be repaid relatively quickly once the seasonal needs have passed.

A Short-Term Funding Strategy Calls for All Seasonal Working Capital