A Firm That Follows an Aggressive Working Capital Financing Approach

question 93

True/False

A firm that follows an aggressive working capital financing approach uses primarily short-term credit and thus is more exposed to an unexpected increase in interest rates than is a firm that uses long-term capital and thus follows a conservative financing policy.

---

Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind, defense mechanisms, and sexuality.

Fixation

In psychoanalytic theory, an obsessive interest or feeling stuck at a particular stage of psychosexual development.

Freud

Sigmund Freud, an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Adult Personality

The pattern of thoughts, feelings, and behaviors that are characteristic of an individual and that persist over time into adulthood.