A Firm That Follows an Aggressive Current Asset Financing Approach

question 124

True/False

A firm that follows an aggressive current asset financing approach uses primarily short-term credit and thus is more exposed to an unexpected increase in interest rates than is a firm that uses long-term capital and thus follows a conservative financing policy.

---

Definitions:

Physical Settings

The tangible or environmental surroundings in which individuals or organizations operate, which can influence behavior and operations.

Major Beliefs

Fundamental convictions or principles held by an individual or group, often shaping their worldview and behavior.

Visible Attributes

Characteristics or features of an individual or object that are easily seen or noticed by others.

Manipulates Others

The act of controlling or influencing people deceitfully or unfairly for one's own advantage.