Which one of the following is NOT true about the flexible current asset investment strategy?
A) The strategy promotes a liberal trade credit policy for customers.
B) The flexible strategy calls for management to invest large amounts in cash, marketable securities, and inventory.
C) The flexible strategy is perceived to be a high-risk and high-return course of action for management to follow.
D) The strategy's downside is the high inventory carrying cost.

Question

Quizplus · Accepted Answer

The flexible current asset investment strategy is generally considered low-risk and low-return, as it involves maintaining high levels of current assets to ensure liquidity and operational flexibility.

Which One of the Following Is NOT True About the Flexible