With respect to working capital policy,firms most often employ

Question

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The principle of self-liquidating debt is the most common approach to working capital policy. This involves financing short-term assets with short-term financing and long-term assets with long-term financing, allowing for the debt to be repaid as the assets are sold or converted into cash. This approach ensures that the firm is not reliant on long-term financing for short-term needs or vice versa, which can lead to cash flow issues and potentially higher costs.

With Respect to Working Capital Policy,firms Most Often Employ