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Q. Conservative policy for financing working capital?
A conservative policy for financing working capital is one where short-term finance is usedto fund:
A: All of the fluctuating current assets, but no part of the permanent current assets.
B: All of the fluctuating current assets and part of the permanent current assets.
C:Part of the fluctuating current assets and part of the permanent current assets.
D: Part of the fluctuating current assets, but no part of the permanent current assets.
Solution:
The answer is D.
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