Conservative short-term financing policy
Conservative short-term financing policy is a strategy that refers to using permanent capital to finance all permanent asset requirements as well as to meet some or all of the seasonal demands.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Conservative short-term financing policy. Refers to using permanent capital to finance all permanent asset requirements as well as to meet some or all of the seasonal demands.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.