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Q. Aggressive Approach of financial management?
A -firm may be aggressive in financing its assets. An aggressive policy is said to be followed by the firm when it uses short-term financing than warranted by the matching plan. Under an aggressive policy, the firm finances. a part of its permanent current assets with short-term financing; some extremely. aggressive firms may even finance a part of their fixed assets with short-term financing. The relatively more use of short-term financing makes the firm more risky. The aggressive financing policy is illustrated in figure aside.
Short Term Financing
Long Term Financing
Fixed Assets
Time Conservative Financing
Time Aggressive Financing
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