Which of the Following Working Capital Financing Policies Subjects the Firm

question 272

Multiple Choice

Which of the following working capital financing policies subjects the firm to the greatest risk?

• A)Financing temporary working capital with long-term debt
• B)Financing permanent working capital with long-term debt
• C)Financing permanent working capital with short-term debt
• D)Financing temporary working capital with short-term debt

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Definitions:

After Meals

A directive in medical prescriptions indicating that the medication should be taken following a meal.

With Food

A directive often associated with medication intake instructions indicating that the medicine should be taken along with food to decrease side effects or enhance absorption.

Subcut

Short for subcutaneous, referring to an injection or administration of medication into the layer of fat just beneath the skin.

SL

Sublingual, a method of administering medication under the tongue.