A company procedure whereby the firm maintains a relatively high ratio of current assets to sales is called a _____ policy.
A) Cash-out.
B) Restrictive.
C) Low inventory.
D) Flexible.
E) Stock-out.

Question

Quizplus · Accepted Answer

A flexible policy involves maintaining a relatively high ratio of current assets to sales, which allows a company to be more adaptable to fluctuations in demand and to ensure that it has sufficient resources to meet its short-term obligations and operational needs.

A Company Procedure Whereby the Firm Maintains a Relatively High