conservative current operating asset financing approach will result in permanent current assets and some seasonal current assets being financed using long-term securities.

Question

Quizplus · Accepted Answer

A conservative current operating asset financing approach involves financing permanent current assets and some seasonal current assets using long-term securities, such as bonds or preferred stock, in order to ensure stability and minimize risk. This approach avoids relying too heavily on short-term financing, such as bank loans or commercial paper, which can be more volatile and expensive in the long run.

Conservative Current Operating Asset Financing Approach Will Result in Permanent