Which of the following are typical financing strategies used by businesses: a

The answer is (a) Maturity matching, aggressive financing, and conservative financing.(a) Maturity matching, aggressive financing, and conservative financing.

Many businesses usually apply the following financing strategies to finance their operations:

1. Aggressive financing. Under this strategy, the firm usually finances its activities from short term sources. The reasoning behind exploiting short term sources of finances is that there is no much cost associated with these sources.
2. Conservative financing. Unlike in the aggressive strategy, the firm mainly utilizes long-term sources to finance its operations in a conservative strategy.
3. Matching financing strategy. A matching strategy is also called a hedging strategy. Under this strategy, both sources of finances (long term and short term) are involved.