Generally speaking, which of the following situations will occur if a seasonal company adopts a compromise financial policy?
I.Periods where short-term financing is required
II.Less long-term debt than if the firm followed a restrictive financial policy
III.Periods of excess funds which can be invested in short-term marketable securities
IV.Lower investment in fixed assets than if the firm adopted a flexible financial policy

Question

Quizplus · Accepted Answer

A compromise financial policy balances between aggressive and conservative approaches, leading to periods of short-term financing needs (I) and times when excess funds are available for short-term investments (III).

Generally Speaking, Which of the Following Situations Will Occur If