A conservatively financed firm would:

Multiple Choice

use long-term financing for permanent assets and capital assets and a portion of the short-term fluctuating assets and use short-term financing for all other short-term assets.

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

use equity to finance capital assets, long-term debt to finance permanent assets, and short-term debt to finance fluctuating current assets.

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