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.

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Definitions:

Resource-Constraint Problems

Challenges faced due to the limited availability of resources necessary to complete tasks or projects.

Sustainable Innovation

Innovation focused on creating new products or processes that meet current needs without compromising the ability of future generations to meet their needs.

Reducing Risks

Implementing strategies and measures to minimize potential harm or losses in various contexts, such as financial investments or business operations.

Sustainable Value Chain

A value chain approach focusing on long term resilience and environmental sustainability, aiming to minimize negative impacts.