As per which one of the following approaches, a firm finance a part of its permanent working capital with short term financing?

Correct option is C

In the aggressive approach to financing working capital, a firm finances a part of its permanent working capital needs with short-term financing. This approach involves relying more on short-term debt or current liabilities to fund the long-term assets and operations of the business. By using short-term financing for permanent working capital, the firm aims to maximize profitability and returns on equity by reducing the cost of capital. In contrast, the conservative approach favors financing permanent working capital needs with long-term financing sources, such as equity or long-term debt. The matching approach aims to match the maturities of assets and liabilities, while the traditional approach focuses on historical or conventional methods of financing.