Which of the Following Statements Best Describes Alternatives to Short-Term

question 45

Multiple Choice

Which of the following statements best describes alternatives to short-term financing policies?

• A)Accruals are an expensive way to finance working capital.
• B)A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.
• C)If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.
• D)A firm following an aggressive financing policy would finance all its permanent NOWC with long-term capital.

---

Definitions:

Linnaeus's Classificatory System

A system developed by Carl Linnaeus for categorizing and naming organisms using a hierarchical structure of kingdoms, classes, orders, families, genera, and species.

Founder Effects

A particular form of genetic drift deriving from a small founding population not possessing all the alleles present in the original population.

Genetic Drift

A mechanism of evolution involving random changes in the frequency of alleles within a population over time.

Testing for DNA

The process of examining a sample to identify the genetic material present, often used in forensic science, paternity testing, and genetics research.