As per matching approach permanent working capital requirements should be funded by
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As per the Maturity Matching Approach, the working capital requirements should be funded by;
Long-term debts.
Under this strategy, the investment in the firm must be done through loans which can be paid-off by the firm with the revenue it generates. This is a risky strategy as it does not mention the loss bearing in a business firm. Most businessmen tend to pay working capital requirements through assets or own capital.
As per the Maturity Matching Approach, the working capital requirements should be funded by;
Long-term debts.
Under this strategy, the investment in the firm must be done through loans which can be paid-off by the firm with the revenue it generates. This is a risky strategy as it does not mention the loss bearing in a business firm. Most businessmen tend to pay working capital requirements through assets or own capital.
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