Which working capital strategy finances all fixed assets and permanent current assets with long-term debt/equity while financing temporary assets with short-term debt?

Explanation

• The Hedging (Maturity Matching) Approach matches asset life with debt maturity: permanent assets with long-term capital, temporary assets with short-term loans.
• An Aggressive Approach finances some permanent assets with short-term debt to minimize interest costs, raising liquidity risk.
• A Conservative Approach finances even temporary assets with long-term funds, maintaining high liquidity at higher cost.