Multiple Choice
The aggressive financing strategy is risky in two aspects: a firm operates with a possibility of ________, and a firm has only a limited amount of ________ capacity.
A) insolvency; short-term borrowing
B) interest rate swings; short-term borrowing
C) low earnings; long-term borrowing
D) fixed interest rate; long-term borrowing
Correct Answer:
Verified
Correct Answer:
Verified
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