Short-Term Projects Should Be Financed with Short-Term Funding While Long-Term

question 103

Multiple Choice

Short-term projects should be financed with short-term funding while long-term projects should be funded with long-term funding.   This is principle is known as the: ​

• A)Working Capital Principle ​
• B)Maturity Matching Principle​
• C)Conservative Financing Principle ​
• D)Spontaneous Financing Principle ​

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Definitions:

Fairness

A broad concept referring to justice, equality, and impartiality in the distribution of benefits and burdens among individuals.

Mental Accounting

The psychological process of categorizing money into different accounts based on subjective criteria, affecting spending and investment decisions.

Behavioral Economics

A field of economic research that combines psychological insights with economic theory to understand how people make decisions and how they can sometimes deviate from rational decision-making.

Threat Of Rejection

The potential or perceived risk of having an offering, proposal, or application denied or refused.