A manager can be aggressive if the firm has all of the following EXCEPT
A) predictable cash-flow patterns.
B) high amounts of permanent current assets.
C) a stable inventory price.
D) basic access to capital markets.

Question

Quizplus · Accepted Answer

High amounts of permanent current assets can tie up a significant portion of a firm's resources and limit its flexibility. Without this constraint, a manager may feel more comfortable being aggressive in pursuing growth opportunities. The other options (predictable cash-flow patterns, stable inventory price, and basic access to capital markets) can all contribute to a firm's stability and ability to take calculated risks.

A Manager Can Be Aggressive If the Firm Has All