A conservatively financed firm would

Multiple Choice

use long$-$term financing for three $\sqrt[\phantom{2}]{f7}ms$ : permanent current assets, fixed assets, and a portion of the short$-$tern

assets. Then use short$-$term financing for all other short$-$term assets.

finance a portion of permanent assets and short$-$term assets with short$-$term debt.

use equity to finance fixed assets, use long$-$term debt to finance permanent assets, and use short$-$term debt

fluctuating current assets.

use long$-$term financing for all fixed assets and short$-$term financing for all other assets.

A conservatively financed firm would

Multiple Choice

use long$-$term financing for three $\sqrt[\phantom{2}]{f7}ms$ : permanent current assets, fixed assets, and a portion of the short$-$tern

assets. Then use short$-$term financing for all other short$-$term assets.

finance a portion of permanent assets and short$-$term assets with short$-$term debt.

use equity to finance fixed assets, use long$-$term debt to finance permanent assets, and use short$-$term debt

fluctuating current assets.

use long$-$term financing for all fixed assets and short$-$term financing for all other assets.

A conservatively financed firm would

Multiple Choice

use long$-$term financing for three $\sqrt[\phantom{2}]{f7}ms$ : permanent current assets, fixed assets, and a portion of the short$-$tern

assets. Then use short$-$term financing for all other short$-$term assets.

finance a portion of permanent assets and short$-$term assets with short$-$term debt.

use equity to finance fixed assets, use long$-$term debt to finance permanent assets, and use short$-$term debt

fluctuating current assets.

use long$-$term financing for all fixed assets and short$-$term financing for all other assets.