Question 6.11: Some businesses may take up a less cautious financing positi...
Some businesses may take up a less cautious financing position than that shown in Figure 6.9 and others may take up a more cautious one. How would the diagram differ under each of these options?
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A less cautious position would mean relying on short-term finance to help fund part of the permanent capital base. A more cautious position would mean relying on long-term finance to help finance the fluctuating assets of the business.

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