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 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.
Correct Answer:
Verified
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