Flexible short-term ﬁnancial policies tend to:
A) Maintain low accounts receivable balances.
B) Support few investments in marketable securities.
C) Minimize the investment in inventory.
D) Maintain large cash balances.
E) Tightly restrict credit sales.

Question

Quizplus · Accepted Answer

Flexible short-term financial policies tend to maintain large cash balances to ensure that the company has enough liquidity to quickly adapt to changes in the market or take advantage of potential investment opportunities. This also enables the company to easily cover expenses and maintain financial stability.

Flexible Short-Term ﬁNancial Policies Tend To