A risk of the ________ financing strategy is unpredictable interest expense.
A) aggressive
B) conservative
C) permanent
D) seasonal

Question

Quizplus · Accepted Answer

An aggressive financing strategy typically involves borrowing large amounts of debt to finance projects or operations. This can lead to unpredictable interest expenses, especially if interest rates rise unexpectedly. With conservative financing, a company may rely more on equity or retained earnings, which can provide more stable funding and predictable costs. Permanent financing refers to long-term debt or equity financing, while seasonal financing is used to cover short-term fluctuations in cash flow.

A Risk of the ________ Financing Strategy Is Unpredictable Interest