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Long-term capital finances all permanent current assets and some temporary financing needs. This current asset financing policy exposes the firm to the greatest amount of

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Long-term capital finances all permanent current assets and some temporary financing needs. This current asset financing policy exposes the firm to the greatest amount of risk from rising interest rates and loan renewal problems. This current asset financing policy finances current assets with liabilities that are expected to mature at the same the current asset will be liquidated

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