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 would be risky to hold onto it for extended periods of time. A prudent manager would not accept additional risk in financing in such a situation. The other conditions listed (predictable cash-flow patterns, stable inventory prices, and basic access to capital markets) would generally make it safer to accept some level of risk in financing.

Which of the Following Is Not a Condition Under Which