Which of the following is not a condition under which a prudent manager would accept some risk in financing?

Question

Quizplus · Accepted Answer

If inventory is highly perishable, it increases the risk of it becoming obsolete or unusable, which would cause financial loss. Therefore, a prudent manager would not accept this type of risk in financing. The other three options (predictable cash-flow patterns, stable prices of inventory, and easy access to capital markets) are favorable conditions that may allow a manager to accept some risk in financing.

Which of the Following Is Not a Condition Under Which