A restrictive short-term ﬁnancial policy tends to:
A)reduce future sales more so than a ﬂexible policy.
B)grant credit to more customers.
C)incur more carrying costs than a ﬂexible policy does.
D)encourage credit sales over cash sales.
E)reduce order costs as compared to a more ﬂexible policy.

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy tends to limit credit sales, which may reduce future sales as customers may seek alternate sources or competitors who offer better credit terms. A more flexible policy may attract more customers and increase sales.

A Restrictive Short-Term ﬁNancial Policy Tends To