The Lumber Mart recently replaced its management team. As a result, they are implementing a restrictive short-term financial policy in place of the flexible policy under which they had been operating. Which one of the following should the employees expect as a result of this policy change?
A) Increasing monthly sales as compared to the prior year
B) Greater inventory selection
C) Fewer out-of-stock occurrences
D) Loss of credit customers
E) More liberal credit terms

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy may include tightening credit terms, which could result in the loss of credit customers. The other options are not necessarily related to this policy change.

The Lumber Mart Recently Replaced Its Management Team