A restrictive short-term financial policy, as compared to a more flexible policy, tends to increase the ability of a firm to charge premium prices.

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A restrictive short-term financial policy typically focuses on minimizing current liabilities and holding minimal levels of cash and inventory, which can limit a firm's flexibility and responsiveness to market demands, rather than enabling it to charge premium prices. Charging premium prices is more related to the firm's brand, product quality, market positioning, and competitive strategy rather than its short-term financial policy.

A Restrictive Short-Term Financial Policy, as Compared to a More