Which Short-Term Financing Policy States That Short-Term Cash Needs Should

question 9

Multiple Choice

Which short-term financing policy states that short-term cash needs should be financed with short-term debt and long-term cash needs should be financed with long-term sources of funds?

• A)aggressive policy
• B)evergreen credit
• C)matching principle
• D)conservatism principle
• E)duration policy

Familiarize with methodological approaches like unobtrusive measures, correlational research, random assignment, and case studies.

Recognize the concept and implications of the third-variable problem.

Understand the advantages and limitations of different research methods including experimental, correlational, and observational studies.

Learn the importance of random sampling and how it differs from random assignment.

---

Definitions:

Noncompetition Clause

A provision in a contract that prohibits one party from competing with another party for a certain period of time and within a certain geographic area.

Legitimate Business Purpose

A rational, honest intention or objective behind a business action or decision, often considered in legal contexts to validate transactions.

Geographic Area

A specific portion of the Earth's surface defined by natural or artificial boundaries, characterized by distinct physical, administrative, or cultural properties.

Public Policy Reasons

Justifications or rationales based on the collective interests or principles of the public, often guiding legislative or judicial decisions.