Which following statement is correct? 1Firms should generally finance all of their assets with long-

Which following statement is correct?

1Firms should generally finance all of their assets with long-term debt

2Firms that follow restrictive financial policies can generally avoid short-term debt financing

3Long-term interest rates tend to be more volatile than short-term rates

4A firm is less apt to face financial distress if it adopts a flexible financial policy rather than a restrictive policy