Which of the Following Statements Regarding How a Firm Should

question 55

Multiple Choice

Which of the following statements regarding how a firm should finance its cash needs is true?

• A) Permanent working capital should be financed by long-term sources of funds, while temporary working capital should be financed by short-term sources of funds.
• B) Permanent working capital should be financed by short-term sources of funds, while temporary working capital should be financed by long-term sources of funds.
• C) Both permanent working capital and temporary working capital should be financed by short-term sources of funds.
• D) Both permanent working capital and temporary working capital should be financed by long-term sources of funds.

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Definitions:

Hallucinations

Experiences involving the apparent perception of something not present, often involving visual or auditory senses but can affect other sensory perceptions.

Schizotypal Personality Disorder

A personality disorder characterized by oddities of thought and behavior but not involving bizarre psychotic behaviors.

Suspiciousness

A tendency to believe, without adequate evidence, that others may be deceiving, harming, or exploiting oneself.

Schizoid Personality Disorder

A mental health condition defined by a persistent tendency to withdraw from social interactions and exhibit a narrow spectrum of feelings.