Which of the Following Current Asset Financing Policies Reflects the Decision

question 113

Multiple Choice

Which of the following current asset financing policies reflects the decision to finance the peaks of current assets with long-term debt and equity that provides the firm with a surplus of cash and marketable securities most of the time, except during peak asset demand?

• A) Flexible financing policy
• B) Restrictive financing policy
• C) Compromise financing policy
• D) Alternative financing policy

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Definitions:

Doubters

Individuals who are skeptical or have reservations about particular ideas, plans, or projects.

Defectors

People who abandon their allegiance, organization, or principles, often moving to an opposing side or withdrawing support.

Defence Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and the perception of internal/external threats.

Change Stage

A phase within a process of transformation or transition which an individual, group, or organization moves through.