A firm with a flexible short-term financial policy will:
A) maintain a low balance in accounts receivables.
B) only have minimal amounts, if any, invested in marketable securities.
C) invest heavily in inventory.
D) have low cash balances.
E) have tight restrictions on granting credit to customers.

Question

Quizplus · Accepted Answer

A flexible short-term financial policy involves maintaining higher levels of current assets, such as inventory, to ensure smooth operations and meet customer demand.

A Firm with a Flexible Short-Term Financial Policy Will