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Answer (C) is correct . Fluctuating current assets can often be financed with short-term debt because the periodic liquidation of the assets provides funds to pay off the debt. However, financing permanent current assets with short-term debt is a risky strategy because the assets may not be liquidated in time to pay off the debt at maturity.

Answer (A) is incorrect because It is not particularly risky to finance working capital needs from long-term debt sources.
Answer (B) is incorrect because It is not particularly risky to finance working capital needs from long-term debt sources.
Answer (D) is incorrect because Financing fluctuating current assets with short-term debt is not as risky as financing permanent current assets with short-term debt.