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.

---

Definitions:

Student Motivation

The level of enthusiasm, drive, or desire with which a student engages with their academic tasks and learning processes.

Academic Achievement

The degree to which an educational goal, whether immediate or future, has been achieved by a student, teacher, or academic institution.

Analytic Intelligence

A facet of intelligence involved in the ability to analyze, evaluate, judge, compare, and contrast information.

Creative Intelligence

The ability to produce new ideas, solutions, and ways to approach problems that are unique and effective.