According to the Self-Liquidating Debt Principle Permanent Assets Should Be

question 107

Multiple Choice

According to the self-liquidating debt principle permanent assets should be financed with ________ liabilities.

• A) permanent
• B) spontaneous
• C) current
• D) fixed

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Definitions:

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's management decisions or financial health, distinct from market-wide risks.

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Beta Over Time

A metric that evaluates the volatility of an asset or portfolio in comparison to the market as a whole, observed across different time periods.