The financing policy that will result in investing in marketable securities when asset requirements are low is referred to as
A) compromise financing.
B) restrictive financing.
C) flexible financing.
D) none of the options.

Question

Quizplus · Accepted Answer

Flexible financing policy involves maintaining a higher level of current assets, or liquidity, than might be necessary, which allows a company to invest in marketable securities when asset requirements are low. This approach provides a cushion against unexpected needs.

The Financing Policy That Will Result in Investing in Marketable