Which of the Following Is an Accepted Financing Wisdom

question 141

Multiple Choice

Which of the following is an accepted financing wisdom?

• A) The maturity of funds used to support a project should roughly match the project's duration.
• B) Because firms can use their own equity as they choose, equity can be used to finance projects of any duration.
• C) Any project can appropriately be supported by funding with a shorter maturity.
• D) Any project can appropriately be supported by funding with a longer maturity.

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Definitions:

Online Transactions

Financial exchanges or the buying and selling of goods and services conducted over the internet.

Postbox Rule

A principle that a mailed acceptance is effective when and where it is dropped into a mailbox.

Counteroffer

A new offer, the proposal of which rejects and terminates the offer available until then.

Unconditional Acceptance

An agreement to the terms of an offer without imposing any additional conditions or limitations.