General Studies · Working Capital Financing Strategies
Which of the following describes a conservative working capital financing strategy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Financing fixed assets entirely through short-term borrowings
- 2Using commercial paper to fund the entire permanent working capital
- 3Financing fluctuating or seasonal working capital with long-term funds✓
- 4Using short-term overdrafts to finance permanent working capital
Correct answer
Financing fluctuating or seasonal working capital with long-term funds
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