The restrictive strategy is a high-risk, high-return alternative to the flexible strategy because of
A) financial shortage costs.
B) production shortage costs.
C) human resources shortage costs.
D) None of the above.

Question

Quizplus · Accepted Answer

The restrictive strategy involves maintaining lower levels of current assets, which can lead to financial shortage costs due to insufficient liquidity to meet short-term obligations.

The Restrictive Strategy Is a High-Risk, High-Return Alternative to the Flexible