A basic principle of finance matches the term of the financing to what?

1. The principle is to match the term of the financing to the period over which benefits are expected from the associated outlay. 2. Short-term items should be financed with short-term funds. 3. Long-term items should be financed with long-term funds. 4. That is why a factory bought for decades of use is not funded by 90-day commercial paper, however cheap the rate looks. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.4 Raising Long-Term Financing_