firm will use spontaneous funds to the extent possible; however, due to credit terms, contracts with workers, and tax laws there is little flexibility in their usage.

Question

Quizplus · Accepted Answer

The statement mentions constraints such as credit terms, contracts with workers, and tax laws that limit the flexibility in using spontaneous funds, indicating that the firm will use them to the extent possible but may need to rely on other sources for certain expenditures.

Firm Will Use Spontaneous Funds to the Extent Possible; However