The financing policy that will result in investing in marketable securities when asset requirements are low is referred to as ______________.
A) Compromise financing
B) Restrictive financing
C) Flexible financing
D) None of these

Question

Quizplus · Accepted Answer

Flexible financing allows for the company to adjust its financing decisions based on its current asset requirements. When asset requirements are low, investing in marketable securities may be a more appropriate financing policy. Restrictive financing would limit the company's ability to invest in marketable securities, and compromise financing is not a commonly used term in finance.

The Financing Policy That Will Result in Investing in Marketable