Under the Maturity Matching Strategy, a Firm Funds All Seasonal

question 10

True/False

Under the maturity matching strategy, a firm funds all seasonal demands with short-term borrowing.

---

Definitions:

Disbursements

Payments made by a business, often involving the outflow of cash for expenses or investments.

Weekly Interest Rate

The interest rate applied to a loan or savings, calculated and compounded on a weekly basis.

Average Daily Receipts

The average amount of cash received by a business each day over a specific period, often used to gauge the company's liquidity and cash flow efficiency.

Collection Delay

The time lag between when a company issues an invoice and when it actually receives payment from the customer.