Which of the following are associated with a restrictive short-term financial policy?
I.large investments in marketable securities
II.liberal credit terms for customers
III.minimal cash balances
IV.minimal credit sales
A)I and III only
B)II and IV only
C)III and IV only
D)I, II and III only

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy typically involves keeping minimal cash balances and minimizing credit sales to customers in order to avoid excessive debt and maintain a strong financial position. Large investments in marketable securities can also be a component of a restrictive policy to increase liquidity, but liberal credit terms for customers are not typically associated with this approach. Therefore, options I and II are incorrect, while options III and IV align with a restrictive short-term financial policy, making option C the correct answer.

Which of the Following Are Associated with a Restrictive Short-Term