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Need help answering this question- is answer 1 correct? According to Minsky's taxonomy of balance-sheet structures, an enterprise borrowing to finance the purchase of a
Need help answering this question- is answer 1 correct?
According to Minsky's taxonomy of balance-sheet structures, an enterprise borrowing to finance the purchase of a fixed asset with a long expected lifetime will be
- A speculative unit
- A Ponzi unit
- It depends on the maturity of the loan taken outspecifically, whether the enterprise will have to roll over the loan during the life of the fixed asset
- A hedge unit
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