In the Duration Matching Method of Evaluating Financing,the Implicit Assumption

question 18

Multiple Choice

In the duration matching method of evaluating financing,the implicit assumption is that:

• A)assets will be used by a firm for a longer period of time than it takes the firm to repay the loan to purchase those assets.
• B)asset value will always offset the amount of the liabilities that were incurred to acquire those assets.
• C)it is possible to acquire assets that will be productive for exactly the amount of time that it takes to repay the loan to acquire those assets.
• D)interest rates affect assets and liabilities in the same way and to the same extent.

---

Definitions:

Passionate Love

An intense emotional and sexual attraction to another person, often characterized by euphoria and desire for closeness.

Mature Love

A deep, enduring form of affection and bond between individuals characterized by mutual respect, attachment, and commitment.

Collectivism

A cultural value that emphasizes the importance of groups and the collective over the desires or needs of the individual.

Personal Goals

Objectives that an individual strives to achieve, which are based on personal desires and values.