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CIMAPRA19-F01-1 Exam - Topic 5 Question 4 Discussion

Company Y is using some of the money from a share issue to purchase a new office building. The company is also using some of the money to purchase inventories. Which method of financing is this?
A) Conservative financing
B) Matching financing
C) Aggressive financing

CIMAPRA19-F01-1 Exam - Topic 5 Question 4 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 4
Topic #: 5
[All CIMAPRA19-F01-1 Questions]

Company Y is using some of the money from a share issue to purchase a new office building. The company is also using some of the money to purchase inventories. Which method of financing is this?

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Suggested Answer: A

by Veronika at May 08, 2022, 03:46 PM

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Deonna
7 months ago
Conservative financing would be safer, right?
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Lavera
7 months ago
Sounds risky to me, not sure about this approach.
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Eliz
8 months ago
Wait, are they really using share issue money for that?
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Katie
8 months ago
I agree, it aligns with the matching principle.
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Andra
8 months ago
This is definitely matching financing.
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Alise
8 months ago
I'm feeling confident about this one. Reducing the volume-based rate discounts seems like the most straightforward way to achieve lower rates while still getting the expertise we need.
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Gaston
8 months ago
Okay, I've got an idea. If the DNS can direct requests to the right cluster, then the answer should be True.
upvoted 0 times
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