Which of the Following Combinations of Asset Structures and Financing

question 109

Multiple Choice

Which of the following combinations of asset structures and financing patterns is likely to create the least volatile earnings?

• A) Illiquid assets and heavy short-term borrowing
• B) Illiquid assets and heavy long-term borrowing
• C) Liquid assets and heavy long-term borrowing
• D) Liquid assets and heavy short-term borrowing

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Definitions:

Four-Day Workweek

A work schedule that allows employees to complete their usual working hours in four days instead of five, aimed at improving work-life balance.

Task Simplification

The process of breaking down a job or task into smaller, more manageable components to increase efficiency and ease of completion.

Weekday Job Sharing

An employment arrangement where two or more individuals share the responsibilities of a full-time position during the workweek.

Job Rotation

A human resources strategy where employees are moved between various jobs at an organization to gain experience and skills across different roles.