Which of the Following Best Describes the Concept of Maturity

Multiple Choice

Which of the following best describes the concept of maturity matching?

A) Companies use funds from selling stocks to fund long-term projects and funds from selling bonds to fund short-term projects.
B) Companies try to match the term of a project with the maturity of the financing that pays for it.
C) Companies use funds from selling bonds to fund long-term projects and funds from selling stocks to fund short-term projects.
D) Companies always use bonds to finance both short- and long-term projects because stocks have no maturity and therefore cannot be matched to the length of projects.
E) None of the above describes the concept of maturity matching.