Home › CBSE Class 12 (Commerce) › Business Studies › Financial Management › Fixed assets should never be financed through wh…
Fixed assets should never be financed through which sources?
AShort-term sources
BDebentures issued
CRetained earnings
DLong-term loans
Answer & Solution
Correct answer: A. Short-term sources
Long-lasting assets must be funded by long-term capital to avoid repayment pressure.
Related questions
Higher inflation affects working capital requirement how?A larger lead time for raw materials means what for working capital?Credit availed from suppliers affects working capital requirement how?A liberal credit policy towards customers raises which requirement?A longer production cycle leads to what working capital need?During a boom, working capital requirement is typically what?Current liabilities are payment obligations due within what period?Which current asset is the most liquid?