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:

George Lyell

This appears to be a mistaken reference. If it intends to refer to Charles Lyell, he was a British lawyer and the foremost geologist of his day, best known for his contributions to the principles of geology and the concept of deep time.

Thomas Malthus

An English economist and demographer known for his theory that population growth will always tend to outrun the food supply and lead to societal collapse.

Influenced Darwin

Refers to the various observations, findings, and scholars that contributed to Charles Darwin’s development of the theory of evolution by natural selection.

Genetic Drift

A mechanism of evolution that leads to random changes in the gene frequencies of a population over time, particularly in small populations.