Which of the Following Statements Regarding How a Firm Should

question 55

Multiple Choice

Which of the following statements regarding how a firm should finance its cash needs is true?

• A) Permanent working capital should be financed by long-term sources of funds, while temporary working capital should be financed by short-term sources of funds.
• B) Permanent working capital should be financed by short-term sources of funds, while temporary working capital should be financed by long-term sources of funds.
• C) Both permanent working capital and temporary working capital should be financed by short-term sources of funds.
• D) Both permanent working capital and temporary working capital should be financed by long-term sources of funds.

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Definitions:

Flexibility

The ability to move joints through their full range of motion; important in fitness, wellness, and preventing injuries.

Balance

The ability to maintain the body's center of mass over its base of support, a key component of motor coordination.

Pelvic Girdle

The pelvic girdle is the bony structure located at the base of the spine that connects the torso and legs, providing support for the upper body.

Thoracic Vertebrae

The twelve vertebrae located in the mid-back region of the spine, forming part of the thoracic cage structure.