Which two of the following are most apt to cause a cash-out for a firm that is generally financially sound?
I.fixed expenses
II.fixed asset purchases
III.flexible financing policy
IV.highly seasonal sales

Question

Quizplus · Accepted Answer

Fixed asset purchases require a cash outlay, which can cause a firm to experience a cash-out even if it is financially sound. Highly seasonal sales can also lead to a cash-flow crunch due to fluctuations in revenue. Flexible financing policies and fixed expenses are not specific causes of cash-outs. Therefore, option B is the most appropriate answer.

Which Two of the Following Are Most Apt to Cause