A firm which successfully employs a _____________ short-term financial policy will probably decrease its risk of default and/or inventory stock-outs.

Question

Quizplus · Accepted Answer

A flexible short-term financial policy involves maintaining a higher level of current assets relative to liabilities, which can decrease the risk of default by ensuring the firm has sufficient liquidity to meet its short-term obligations and reduce the likelihood of inventory stock-outs by having more resources available to manage inventory levels effectively.

A Firm Which Successfully Employs a _____________ Short-Term Financial Policy