A restrictive short-term ﬁnancial policy, as compared to a more ﬂexible policy, tends to increase the
sales of a ﬁrm due to the ﬁrm's credit availability and terms.

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy may limit a firm's credit availability and terms, which could potentially decrease sales as customers may seek out more flexible options with competitors.

A Restrictive Short-Term ﬁNancial Policy, as Compared to a More