Which Short-Term Financing Policy States That Short-Term Cash Needs Should

question 13

Multiple Choice

Which short-term financing policy states that short-term cash needs should be financed with short-term debt and long-term cash needs should be financed with long-term sources of funds?

• A) aggressive policy
• B) evergreen credit
• C) matching principle
• D) conservatism principle

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Definitions:

Goods And Services

Products and activities provided by businesses to satisfy the needs and wants of consumers.

Buying Process

The sequence of stages consumers go through, from recognizing a need or desire, through information search and evaluation of alternatives, to the purchase decision and post-purchase behavior.

Internal Stimulus

Psychological or emotional factors within an individual that trigger a desire or need, prompting them to make a purchase or decision.

Low-involvement Purchase

Buying decisions made by consumers with minimal research and consideration as the product is often inexpensive and perceived as low risk.