Which of the Following Statements Regarding How a Firm Should

question 5

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.
• E)Permanent working capital should be financed by long-term sources of funds,while temporary working capital should only be paid for with cash.

---

Definitions:

Life Span Development

The study of how individuals grow, change, and adapt at different life stages, from conception to death, incorporating physical, cognitive, and socioemotional changes.

Clinical Practitioners

Healthcare professionals, such as doctors and therapists, who apply theoretical and empirical knowledge to diagnose and treat patients.

Human Behavior

Actions and mannerisms exhibited by individuals, influenced by culture, attitudes, emotions, values, and genetics.

Internal Validity

The accuracy with which a study can pinpoint one of various possible factors as the cause of a phenomenon.