A restrictive short-term financial policy tends to:
A) Reduce future sales more so than a flexible policy.
B) Grant credit to more customers.
C) Incur more carrying costs than a flexible policy does.
D) Encourage credit sales over cash sales.
E) Reduce order costs as compared to a more flexible policy.

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy limits credit and inventory, which can reduce future sales compared to a more flexible policy that allows for more credit and inventory to support sales growth.

A Restrictive Short-Term Financial Policy Tends To