Final answer:
The statement is false; an aggressive financing strategy usually uses short-term financing for both permanent and temporary assets, offering higher risk and potential profitability, unlike the conservative approach using long-term financing.
Step-by-step explanation:
The statement "The aggressive financing plan involves utilizing long-term financing for permanent and temporary current assets" is FALSE. An aggressive financing strategy typically involves using short-term financing to finance both temporary and some permanent current assets, with the potential for higher risk and higher profitability. This plan is more risky because short-term interest rates can vary more than long-term rates, which can affect the company's cost of capital and cash flow. Conversely, a conservative financing strategy would involve long-term financing for both permanent current assets and some or all temporary current assets, providing a lower risk of liquidity issues but potentially lower profitability.