Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Which of the following are typical financing strategies used by businesses: a

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

Finance

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

a. Maturity matching, aggressive financing, and conservative financing,

b. Size matching, aggressive financing, and aggressive financing,

c. Maturity matching, size matching, and aggressive financing,

d. Maturity matching, size matching, and conservative financing.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

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.