as per matching approach permanent working capital requirements should be funded by a)long term funds
b)short term funds
c)medium term funds
d)any of the above
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Long term funds should be used in this case
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The answer is long-term debts.
This type of strategy comes handy when the investment made on the firm is slowly returned.
The long-term debts work as per the generation of revenue on annual basis.
However, it can be a risky part to follow due to bearing a loss at a point of the whole setup.
There are many businesses that pays via working capital requirements.
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