MANAGEMENT

Detailed explanation-1: -Aggressive Approach A company is said to follow an aggressive working capital financing policy if it finances most of its temporary assets with short-term financing in a proportion that is beyond the matching approach.

Detailed explanation-2: -The aggressive approach suggests that the entire estimated requirements of current assets or working capital should be financed from short-term funding sources. It says that even a part of fixed assets investments is to be financed from short-term sources.

Detailed explanation-3: -Which of the following would be consistent with a more aggressive approach to financing working capital? Financing short-term needs with short-term funds.

Detailed explanation-4: -The hedging approach to financing involves matching maturities of debt with specific financing needs. 5. In general, long-term debt costs less than short-term debt.