Which of the Following Is Most Consistent with the Self-Liquidating

question 6

Multiple Choice

Which of the following is most consistent with the self-liquidating debt principle in working capital management?

• A)Fixed assets should be financed with short-term notes payable.
• B)Inventory should be financed with preferred stock.
• C)Accounts receivable should be financed with short-term lines of credit.
• D)Borrow on a floating rate basis to finance investments in permanent assets.

---

Definitions:

Aggressiveness

A behavior characterized by strong self-assertion and often by hostility or attack.

Skinner

B.F. Skinner, an influential American psychologist known for his work on behaviorism and for developing the theory of operant conditioning.

Parental Pampering

Overindulgent behavior by parents that can lead to children developing a sense of entitlement or lack of self-discipline.

Individual Psychology

A psychological approach focusing on a person's unique, individual nature and their pursuit of goals for self-improvement and community welfare.