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"Maturity matching" concept

1. Should the decision to invest in short term assets be approached differently from the decision to invest in long-term assets?

2. Explain the "maturity matching" concept. Why do many companies pursue policies based on this idea?

3. Uncertainty makes it difficult for a financial manger to forecast a company`s requriement for shot-term funds. Discuss what steps can a financial manager take to minimise the resulting risks to the company?

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