The aggressive financing strategy is a ________ method while the conservative financing strategy is a ________ method.
A) high-profit, high-risk; low-profit, low-risk
B) high-profit, low-risk; low-profit, high-risk
C) low-profit, high-risk; high-profit, low-risk
D) low-profit, low-risk; high-profit, high-risk

Question

Quizplus · Accepted Answer

The aggressive financing strategy involves using more debt to finance operations, aiming for higher profits but at a higher risk due to the increased debt burden. Conversely, the conservative financing strategy relies more on equity or retained earnings, aiming for stability and lower risk but typically resulting in lower profits.

The Aggressive Financing Strategy Is a ________ Method While the Conservative