When the Length of the Financing Is Directly Related to the Life

question 8

Multiple Choice

When the length of the financing is directly related to the life of the asset being financed,the firm is said to follow a:

• A) policy of maturity matching.
• B) restrictive financing strategy.
• C) matched depreciation strategy.
• D) minimum working capital strategy.

---

Definitions:

Fallacy of Diversion

A logical fallacy that occurs when an argument is diverted away from the original issue, often by introducing a related but different subject.

Electrical Shocks

The sudden discharge of electricity through a part of the body, causing a swift and sometimes severe reaction.

Logical Structure

The framework of reasoning that underlies the organization and coherence of arguments or ideas.

Global Warming

The long-term rise in Earth's average temperature, primarily due to human activities increasing levels of greenhouse gases.