What is conservative therapy? Search conservative approach and thousands of other words in English definition and synonym dictionary from Reverso. A company adopting this strategy maintains a higher level of current assets and therefore higher working capital also.
Conservative approach is a risk-free strategy of working capital financing. The major part of the working capital is financed by the long-term sources of funds such as equity, debentures , term loans etc.
As this financing strategy uses long-term funds, it has less risk of a shortage of immediate funds. The epithet conservative or liberal is used to describe political and economic views and affiliations. The meaning of conservative or liberal could be different in different contexts - social, economic and political. They also differ in usage in different countries and over time.
For example, a capital growth strategy seeks to maximize capital appreciation or. All probable losses are recorded when they are discovere while. Some are not so good and even personally demeaning.