Business A-Level
The Matching Principle
What The Matching Principle means in Business A-Level, as defined for Pearson Edexcel.
Definition of The Matching Principle
The strategic alignment of the duration of the finance source with the life of the asset being funded, ensuring short-term assets are not funded by long-term debt and vice versa.
Topics that use The Matching Principle
- Raising finance (Pearson Edexcel A-Level)
Related terms
Using The Matching Principle in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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