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

question 13

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

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Definitions:

Informal Organizational Structure

The unofficial relationships, networks, and dynamics within an organization that influence decisions, communication, and workflow.

Functional Structure

An organizational design that groups together people who are doing similar jobs, use similar skills, or provide similar services within an organization.

Divisional Structure

An organizational framework where the company is divided into semi-autonomous units, each responsible for a particular business aspect or geographical area.

Customer Segments

Groups of potential consumers classified by specific characteristics like demographics, behaviors, or needs, helping businesses to target their products or services more effectively.