What strategy regarding long- versus short-term financing is not being followed if managers resort to short-term investing during downturns in the business cycle?

Question

Quizplus · Accepted Answer

Resorting to short-term investing during downturns in the business cycle is a sign of a restrictive strategy because it limits the company's ability to invest in long-term projects and growth opportunities. A relaxed strategy would involve relying solely on long-term financing, while a middle-of-the-road strategy would involve balancing long-term and short-term financing based on the company's needs and market conditions.

What Strategy Regarding Long- Versus Short-Term Financing Is Not Being