BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Current assets of enterprises may be financed either by short-term sources or long-term sources or by combination of both. The main sources constituting long-term financing are shares, debentures, and debts form banks and financial institutions.

Detailed explanation-2: -Broadly, there are three working capital management strategies – conservative, hedging and aggressive. The effectiveness of these three approaches depends on risk and profitability.

Detailed explanation-3: -Current Assets Financing Policy : What mix of short term and long term debt should the firm employ to support its current assets. Working capital can be financed by different source like – long term sources, short term sources or transactionary sources (like credit allowances, outstanding labour and other expenses).