Asset Liquidity
Financing Plan	Low Liquidity	High Liquidity
Short Term	1 High Profit High Risk
Long Term		4 Low Profit Low Risk

Why is Box #1 considered High Risk?

		Because a company is only borrowing as much money as it needs, with no reserves.
		Because short term interest rates may rise year over year lowering profits.
		Because credit markets could close, and a company will not be able to borrow for working capital needs.
		All of the above: A, B & C