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

question 42

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

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Definitions:

Seek Out

The action of actively looking for or making an effort to find something or someone.

Relaxed

A state or condition of being free from tension, stress, or anxiety.

Democratic Groups

Groups that operate under the principle of democracy, where decisions are made collectively and each member has an equal vote or say.

Productive

Yielding positive results or benefits; effective in achieving intended outcomes.