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:

Unforeseen Emergency

involves situations or events that could not have been reasonably anticipated and require immediate action to prevent or mitigate harm.

Power of Attorney

is a legal document that grants one person the authority to act on behalf of another person in legal or financial matters.

Express Authority

Legal power granted explicitly to an agent or representative by a principal, allowing them to act on the principal's behalf.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.