Which of the Following Statements Regarding How a Firm Should

question 5

Multiple Choice

Which of the following statements regarding how a firm should finance its cash needs is true?

• A) Permanent working capital should be financed by long-term sources of funds, while temporary working capital should be financed by short-term sources of funds.
• B) Permanent working capital should be financed by short-term sources of funds, while temporary working capital should be financed by long-term sources of funds.
• C) Both permanent working capital and temporary working capital should be financed by short-term sources of funds.
• D) Both permanent working capital and temporary working capital should be financed by long-term sources of funds.
• E) Permanent working capital should be financed by long-term sources of funds, while temporary working capital should only be paid for with cash.

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Definitions:

High-Quality Work

Work that surpasses ordinary standards of quality, often characterized by attention to detail, precision, and dedicated skill.

Job Morale

The overall attitude, satisfaction, and outlook that employees have towards their work environment.

Self-Esteem

pertains to one's sense of self-worth or personal value.

Self-Disclosure

The act of revealing personal, private information about oneself to others.