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The Aggressive Financing Strategy Is Risky in Two Respects: the Firm

Question 218

Multiple Choice

The aggressive financing strategy is risky in two respects: the firm operates with a low level of ________, and the firm has only a limited amount of ________ capacity.


A) current liabilities; short-term borrowing
B) net working capital; short-term borrowing
C) current assets; long-term borrowing
D) net working capital; long-term borrowing

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