Which of the Following Statements About Maturity Matching Strategy Is

question 24

Multiple Choice

Which of the following statements about maturity matching strategy is true?

• A) All seasonal working capital needs are funded with short-term borrowing.
• B) As the level of sales varies seasonally, short-term borrowing fluctuates with the level of seasonal working capital.
• C) All fixed assets are funded with long-term financing.
• D) All of the above

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Definitions:

Escape Learning

A form of learning in which an organism learns to perform an action in order to terminate an unpleasant stimulus.

Negative Punishment

A behavior reduction strategy where a favorable stimulus is removed following the undesired behavior.

Avoidance Learning

A process in behavioral psychology where a subject learns to prevent the occurrence of an unpleasant stimulus by performing a particular behavior.

Negative Reinforcement

A behavioral strategy where an aversive stimulus is removed following a desired behavior, increasing the frequency of that behavior.