temporary
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permanent asset should be financed with permanent and spontaneous sources of financing,while temporary assets should be financed with temporary sources of financing.
distinguish between temporary and permanent working capital?
A temp to perm loan is a temporary loan that can become permanent if certain conditions are met. The terms and conditions typically include a set time period for the temporary loan, requirements for converting it to a permanent loan, and details on interest rates and repayment terms.
Permanent working capital is the minimum investment in the form of inventory of raw materials, work-in-progress, finished goods, stores and book debs to facilitate uninterrupted operation in a firm. This minimum level is called the permanent or working capital.It is permanent like the firm's fixed assets are. Over and above this, the firm's working capital requirements fluctuate depending upon the cyclicality and seasonality of product demands. The is referred to as the variable or fluctuating or temporary working capital.
In most cases yes simply because the employment is temporary in nature and can stop at any time once you go permanent the dynamic will change.