In a conservative firm which statement best describes the na

In a conservative firm, which statement best describes the nature of the assets and the financing of the assets?

A. The firm would have a lot of current assets, and utilize a lot of short-term debt financing.

B. The firm would have a lot of current assets, and utilize a lot of long-term debt and equity financing.

C. The firm would have a lot of long-term assets, and utilize a lot of short-term debt financing.

D. The firm would have a lot of long-term assets, and utilize a lot of long-term debt and equity financing.

Solution

In a conservative firm, the firm would have a lot of current assets, and utilize a lot of long-term debt and equity financing. Option B is correct