In a conservative firm, which statement best describes the nature of the assets
ID: 2610306 • Letter: I
Question
In a conservative firm, which statement best describes the nature of the assets and the financing of the assets?
A. The firm would have a lot of current assets, and utilize a lot of short-term debt financing.
B. The firm would have a lot of current assets, and utilize a lot of long-term debt and equity financing.
C. The firm would have a lot of long-term assets, and utilize a lot of short-term debt financing.
D. The firm would have a lot of long-term assets, and utilize a lot of long-term debt and equity financing.
Explanation / Answer
In a conservative firm, the firm would have a lot of current assets, and utilize a lot of long-term debt and equity financing. Option B is correct