Which of the following statements is most correct?
A. For small companies, long-term debt is the principal source of external financing.
B. Current assets of the typical manufacturing firm account for over half of its total
assets.
C. Strict adherence to the maturity matching approach to financing would call for all
current assets to be financed solely with current liabilities.
D. Similar to the capital structure management, working capital management requires
the financial manager to make a decision and not address the issue again for several
months.
A. For small companies, long-term debt is the principal source of external financing.
B. Current assets of the typical manufacturing firm account for over half of its total
assets.
C. Strict adherence to the maturity matching approach to financing would call for all
current assets to be financed solely with current liabilities.
D. Similar to the capital structure management, working capital management requires
the financial manager to make a decision and not address the issue again for several
months.