Firms following a relaxed current asset policy are likely to __________ holdings of cash and have a __________ credit policy on sales.

Question

Quizplus · Accepted Answer

According to the statement, firms with a relaxed current asset policy would have larger holdings of cash, as they are not actively minimizing their current assets. Additionally, they would have a liberal credit policy on sales, as they are taking a more relaxed approach to their assets overall. Option C is the only answer choice that reflects these characteristics.

Firms Following a Relaxed Current Asset Policy Are Likely to __________