A flexible short-term financial policy:
A) increases the need for long-term financing.
B) minimizes net working capital.
C) avoids bad debts by only selling items for cash.
D) maximizes fixed assets and minimizes current assets.
E) is most appropriate when carrying costs are high and shortage costs are low.

Question

Quizplus · Accepted Answer

The Answer of A flexible short-term financial policy:
A) increases the need for long-term financing.
B) minimizes net working capital.
C) avoids bad debts by only selling items for cash.
D) maximizes fixed assets and minimizes current assets.
E) is most appropriate when carrying costs are high and shortage costs are low.

A Flexible Short-Term Financial Policy