The Principle of Maturity Matching Suggests That [Blank]

question 75

Multiple Choice

The principle of maturity matching suggests that [blank].

• A)machinery with a five-year economic life be financed with debt that will be paid off in five years or less
• B)seasonal peaks in inventory be financed with traded credit
• C)the minimum level of current assets required for the firm's year around operations be financed with permanent sources
• D)all of the above

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Definitions:

1970

Denotes the year notable for various significant global and national events, including the continuation of the Vietnam War and the Environmental movement leading to the first Earth Day.

2000

The year notable for marking the beginning of a new millennium and the controversial U.S. presidential election between George W. Bush and Al Gore.

In Loco Parentis

A legal doctrine meaning "in the place of a parent," referring to the authority of an institution or individual to take on some of the functions and responsibilities of a parent.