Certain Financing Plans Are Termed Conservative When

question 160

Multiple Choice

Certain financing plans are termed conservative when

• A) short-term financing is used frequently.
• B) working capital is relatively low.
• C) risk is increased.
• D) working capital is relatively high.

---

Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them rights to dividends and a say in company matters through voting.

Creditors

Individuals or institutions to whom money is owed by the debtor for provided goods, services, or loans.

Privately Held Corporation

A privately held corporation is a business entity owned by private investors, shareholders, or company members, and not publicly traded on stock exchanges.

Toronto Stock Exchange

Canada's largest stock exchange, located in Toronto, Ontario, where stocks, bonds, and other securities are bought and sold.