Which of the following tend to rise when a firm switches to a flexible financial policy from a restrictive financial policy?
I.Restocking costs
II.Price reductions to offset limited selection
III.Storage costs
IV.Current asset opportunity costs

Question

Quizplus · Accepted Answer

When a firm switches to a flexible financial policy, it typically holds more current assets, leading to higher storage costs and increased opportunity costs associated with holding these assets.

Which of the Following Tend to Rise When a Firm